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2010 (11) TMI 282 - CESTAT, NEW DELHIDemand of duty, interest and penalty - Non-accountable of goods - Shortage of inputs can explain excess of finished goods - Shortage of inputs cannot explain shortage of finished goods - When the officers visited, the premises of the factory, a huge shortage of inputs has been noticed - When the officers visited the factory again, this time, for a change, they noticed shortage of finished goods -The director of the Company made a feeble attempt to link the inputs goods found to the shortage of finished goods - The investigating officers however, did not deem it necessary to continue further investigation, show cause notice has been issued of course, invoking the provisions of Section 11AC as well - Do not find any justification whatsoever to link the shortage of finished goods with the shortage of inputs - Shortage of inputs can explain excess of finished goods. Shortage of inputs cannot explain shortage of finished goods - Thus it is a clear case of non-accounted shortage and penalty is warranted under Rule 25(1)(b) - However, no evidence has been relied upon by the department justifying invokation of provisions of Section 11AC - Decided in favour of assessee.
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