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2015 (1) TMI 213 - AT - Central ExciseConfirmation of demand of duty on the short found finished goods and the raw materials - Commissioner (Appeals) has set aside the demand of ₹ 4,02,477/- in respect of short found raw materials on the ground that the same were used by the assessee in the manufacture of the final goods, which were found in excess - He also observed that once the raw materials were entered in the records, assessee cannot escape to record the finished goods against the said raw materials - Held that:- Entire case of the Revenue is based upon the alleged shortages detected during their visit in the assessee’s factory. The assessee’s authorised representative, in his statement, has accepted the shortages. However, he is nowhere deposed that the said alleged short found goods were cleared by them clandestinely. Apart from the alleged shortages, there is virtually no evidence on record to corroborate the allegation of clandestine removal. The Tribunal in number of decisions has held that mere shortages cannot lead to inevitable conclusion of clandestine removal. As such, I find no justification for confirmation of duty demand of ₹ 2,26,880/- against the assessee. There were certain excesses also found in the assessee’s factory. Admittedly, the said excess found goods must have been manufactured out of the raw materials entered in the records. There is no evidence that the raw materials for the said excess found goods were procured clandestinely by the assessee. As such, Commissioner (Appeals) has rightly observed that once raw materials entered in the record, an assessee is bound to reflect the use of the same in the manufacture of the final product. If the raw materials contained in excess found goods is taken into consideration, no duty confirmation would fall on the assessee. Otherwise also, I find that there is virtually no evidence on record to show that the said alleged short found raw materials stand cleared by the assessee. Accordingly, I find no infirmity in the said part of the impugned order of the Commissioner (Appeals). - Decided in favour of assessee.
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