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2016 (2) TMI 450 - AT - Central ExciseShortage of inputs as well as finished goods - Demand of duty along with interest - Penalty imposed - Held that:- Weighment of stock has been done on the basis of averages of the stocks found in the factory during the course of investigation. In appellant’s own statement although the duty has been paid but reasons for shortages has been explained by the appellant that shortage might be the reason that the weighment has been done on average basis. Therefore, the facts of the case of Bajrang Petro Chemicals (P) Ltd. (2014 (12) TMI 738 - ALLAHABAD HIGH COURT ) are distinguishable from the facts of the case in hand. In fact, in that case explanation of shortages were not offered by the appellant but in this case appellant has explained the reason of shortages for average base method for weighment. Further, the Hon’ble High Court of Allahabad itself in the case of Minakshi Castings (2011 (8) TMI 896 - ALLAHABAD HIGH COURT ) has held that the shortage without any evidence of clandestine removal cannot lead to inference to evasion of duty. Therefore, as in this case Revenue has not come with any evidence which can lead the goods have been cleared clandestinely. Merely on the basis of stock taking on average basis the allegation of clandestine removal of goods is not sustainable. With these observations, hold that stock taking done on average basis is not a correct method. Consequently, the allegation of shortage of input/finished goods due to clandestine removal is not sustainable. - Decided in favour of assessee
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