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2017 (1) TMI 1455 - AT - Central ExciseClandestine removal - penalty - whether shortage of finished goods detected during stock taking can be held as shortage due to clandestine removal of goods, without any cogent evidence? - Held that: - it was observed that during the last six months i.e. from July 2010 to 24 January 2011, they have produced 8712.220 MT of MS Ingot and the shortage detected is only 0.63% of the production during the period in question and hence a very small negligible difference has been found which in no way can be removed clandestinely - there is no evidence on record of clandestine removal of the goods. In other words, it is a case of mere shortage of goods during stock verification and imposition of penalty under Section 11AC of the Act is not warranted. In the case of Commissioner of Central Excise and Service Tax, Ludhiana v. Anand Foundries Engineers [2015 (11) TMI 1166 - PUNJAB & HARYANA HIGH COURT], the Hon’ble Punjab and Haryana High Court dismissed the appeal filed the by the Revenue. It has been observed that the assessee, in his statement, had admitted only to shortage and not to clandestine removal of the goods. The charge of clandestine removal is not established. Penalty set aside - duty with interest upheld - appeal allowed in part.
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