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2014 (9) TMI 868 - AT - Central ExciseShortage of goods found - Redemption fine imposed - Penalty - Held that:- Panchnama clearly brings out the shortage as well as excess of the respective goods vis-a-vis. their statutory records. As regards the contention of the appellants that the discrepancy was due to the mental stress of the person who maintained the statutory records as he was disturbed because of the disappearance of his wife and son, the ld. Advocate admitted that he is not aware when this disappearance took place or whether any FIR was lodged with the Police. Even if this contention is taken on record, the mistake in the accounts can be corrected and the appellants would have submitted the corrected version of the statutory records to explain the discrepancy if the discrepancy was indeed because of mistake in the accounts. It is evident that no such corrected accounts were submitted to explain the shortage/excess which shows that the alleged excess/shortage was real and not merely a consequence of mistake in the accounts. The appellants also admitted the said shortage/excess and the Panchnama recording the said excess/shortage has never been questioned by the appellants. The shortage/excess found are substantial and that there is no plausible explanation whatsoever put forth explaining the same so far. There is no assertion that the accounts were incorrectly maintained or that the Panchnama was defective. The goods involved are such that they cannot disappear due to natural factors. The shortage/excess were clearly admitted by the appellants and the Panchnama certifies the same. In the circumstances it is axiomatic that as admitted by the appellants, such shortage can be caused only by removal of the goods. It is not a mere conjecture but an undeniable fact that shortage of the goods, in the absence of any other reason, can be caused only by their removal. The excess of certain finished goods found is also a matter of fact which is not disputed. None of the case laws cited by the appellants deal with such facts where the assessee has admitted the offence, not retracted the statement, the Panchnama is proper and not questioned at any stage as suffering from any infirmity and there has been no accounting mistake. - Decided against Assessee.
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