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2014 (7) TMI 524 - AT - Central ExciseClandestine remvaol - Assessee showed physical loss in balance sheet - Assessee contends that goods were destroyed on 9.3.01 on account of leakage of water from chilling plant and water bath of tape plant during the holiday festival in 2001 and intimation is given to police station - held that:- As regards the intimation to the police authorities, I have been shown the receipted intimation dated 10.3.2001 addressed to the Station Incharge, Police Station Faridpur, Faridpur Bareli intimating that on 10.3.01, the factory was opened and it was found that the same was flooded and approximately 200 MT material lying in the factory got damaged due to water. As such, observation of Commissioner (Appeals) that no intimation was filed with Police cannot be appreciated - Police officer informend Revenue that report of loss of material was given however, since he was not present therefore, there is no record of it. Revenue's entire case is based upon the factum of work-in-progress goods shown as physical loss in the balance sheet. Apart from contending that such loss is much on the higher lower side, and as such creates doubt and there is virtually no evidence to show that said goods were fully manufactured by the appellant and were cleared without payment of duty. The charges of clandestine removal being serious charges are required to be assessed by production of inevitable evidence. It is well settled that demands on the basis of charges of clandestine removal cannot be confirmed on the basis of doubts being entertained by the Excise officer. - Decided in favour of assessee.
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