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2014 (7) TMI 617 - AT - Central ExciseDuty demand - Shortage of stock - Clandestine removal of goods - Penalty u/s 11AC - Held that:- Aapart from report of the Income Tax authorities there is nothing on record that the respondents had actually manufactured and removed the goods clandestinely as rightly discussed by the Commissioner (Appeals). The stock verification done by the Income Tax authorities cannot be accepted on its face value in view of the doubts raised by the respondents and in the absence of corroborative evidence, no duty of excise have been confirmed. The Tribunal in the case of Ravi Foods Pvt. Ltd. Vs. CCE, Hyderabad [2010 (12) TMI 290 - CESTAT, BANGALORE] has held that the information received from the Income tax Department cannot be made the sole basis for confirmation of demand under the Central Excise when the Central Excise authorities in their investigations did not find any corroborative evidence of clandestine removal of their final products - Decided against Revenue.
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