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2015 (10) TMI 1914 - CESTAT NEW DELHIDuty demand - Shortage of goods - Clandestine removal of goods - Held that:- Entire case of the Revenue is based upon the alleged shortages detected at the time of their visit. Even if the Revenue's contention that there was proper physical verification as against the appellants claim to the contrary, is accepted even then, I find that shortages in MS scrap is around 4.848 MT as against stock of 227.900 MT and shortage in CTD bars is to the tune of 33.900 MT as against the stock of 194.400 MT. Keeping in view the nature of goods, such shortages are minor and are bound to happen in an industry of the like kind. Apart from the shortages there is no evidence to show that goods in question have been cleared clandestinely. The Tribunal has, in a number of cases, has held that shortages alone cannot lead to the finding of clandestine removal. One such reference can be made to the Tribunal’s decision in the case of In on Creation v. CCE, Thane [2012 (10) TMI 2 - CESTAT, MUMBAI]. As such, there is no justification for confirmation of demand or for imposition of penalty upon the appellant on the said count. - here is virtually no evidence to reflect that the appellant did not enter their goods on their statutory records with any mala fide intention. Similarly, shortage of scrap would not call for any confirmation of demand against them. As such, I find no justification for confirmation of the same. - Decided in favour of assessee.
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