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2014 (5) TMI 834 - AT - Central ExciseDuty demand - Penalty - Shortage in stock - Commissioner (Appeals) set aside the impugned order of the original adjudicating authority on the ground that the verification report is not correct in as much as the same relates to various varieties of nuts and bolts manufactured by the respondents, whereas, they were maintaining single consolidated RGI register without recording the production on variety-wise basis - Held that:- Revenue’s entire case is based upon the allegedly detected shortages by the visiting officers read with the statement of the proprietor. The assessee is manufacturing different varieties of nuts and bolts and is maintaining only one consolidated RGI register in respect of all the varieties. As such, it is not only difficult, but impossible for the visiting officers to detect the shortages on variety-wise basis. It is not explained as to how the alleged shortages were detected by the officers, without even preparing any inventories. Apart from the said shortages, there is virtually no other evidence to show the clandestine manufacture and removal of the goods by the respondents. The Revenues reliance on the statement of Shri Amrik Singh, given before the visiting officers accepting the shortages and clandestine removal, cannot be pressed into services, in the absence of any independent corroborative evidence. Further, the contention of the respondents is that their production is mainly exported and the indigenous clearances are only to the industrial units is to be accepted in the absence of any contrary evidence to that effect. If that be so, the statement of the proprietor, deposing that the goods were sold in the open market to independent buyers cannot be held to be correct reflection - Decided against Revenue.
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