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2015 (10) TMI 331 - AT - Central ExciseDuty demand - Clandestine removal of goods - Shortage of goods - Penalty u/s 11AC - Held that:- Entire shortage of CTD bars was noticed during physical stock taking. The department has noticed shortage of 104.46 MTs. I find that there was no further investigation carried out except recording of statement from the M.D. of appellant company. The department has not established actual shortage so as to attribute clandestine removal. - any shortage of finished goods not accounted in the records is liable for excise duty. Every shortage of finished goods cannot be attributed as clandestine removal and unless it is proved to the contrary with evidence. Further, I find that adjudicating authority has demanded duty on 111.82 MTs whereas the actual shortage was 102.476 MTs as per the SCN. I find that appellants are liable for payment of excise duty on the quantity of 102.476 MTs found short in their accounts on the date of stock taking. - appellant is liable for excise duty and it is restricted to actual shortage of 102.476 MTs found short during physical stock taking and the demand is upheld to that extent. Penalty is set aside. - Decided partly in favour of assessee.
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