2002 (12) TMI 419 - AT - Central Excise

Summary

The appeals involved stocktaking of excisable goods in processing of fabrics. Stock discrepancies in under process fabrics led to duty recovery demands and penalties. The Tribunal found the proceedings based on wrong interpretation of Rule 223A, as it does not cover fabrics under process. Shrinkage in fabric processing is common, and penalties under Rule 173Q were deemed misplaced. The orders were set aside, and appeals allowed.