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2014 (10) TMI 805 - AT - Central ExcisePenalty u/s 11AC - Clandestine removal of goods - document evidence to prove - Held that:- officers had carried out complete physical stock taking of finished goods, and also verified the production register and tallied with physical stock and concluded there was no difference between physical stock and daily production register. This clearly shows that the officers have not found out any shortage or excess of finished goods other than what was recorded in statutory Register i.e. R.G.1. It is seen that the entire allegation in the SCN was made out only on the basis of salary file recovered from the appellant’s premises. in the case of any clandestine removal of excisable goods, it is mandatory on the part of the investigating officers to establish with corroborative evidence of the actual shortage of quantity or excess production and clearance of goods or evidence of payments received, place of delivery to whom the goods are delivered, details of recipients etc. The entire demand of duty has been arrived purely on the basis of quantity shown in salary file and the statement of Shri R.P. Lakshmana Perumal. Apparently, no other evidence has been brought on record to corroborate shortage of quantity as per salary file with daily production register. Entire investigation has relied only on the salary file which only relates to payment of wages for each labourer. In the absence of any other documentary evidence, the quantity mentioned in the foot note cannot be taken as the total quantity produced during that week. Further, as explained above, the said quantity is not only related to finished goods but related to lap stage production. The adjudicating authority in his order had discussed the issue in detail and by relying on the Tribunal s decisions (supra) had rightly dropped the proceedings against the appellant as well as against Shri R.P Lakshmana Perumal, Managing Director of the company. Therefore, respectfully following the Tribunal s decision (supra) I do not find any merit in the impugned order. Accordingly, the impugned order is set aside and the order of the adjudicating authority is upheld - Decided in favour of assessee.
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