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2016 (4) TMI 931 - AT - Central ExciseDemand of interest - Improper stock taking method - Whether certain shortages of sponge iron detected by the officers during a joint physical stock verification were correct or not - Authorized signatory was present during the course of such stock-taking and the method adopted and the duty liability was accepted by appellants. Also the duty involved on the shortages of finished goods was also paid on the same day without protest. Held that:- weighment of goods was done by a joint physical stock verification where authorized signatory was also present and the methodology was also approved by the appellants. Any retraction of statement or questioning the methodology of weighment can be made before the issue of Show Cause Notice so that Revenue can take appropriate measures for conducting additional investigations. As the stock-taking was done with the concurrence of the appellants, therefore, at a later stage, after completion of investigation and issue of Show Cause Notice, appellant cannot turn around and take a stand that stock-taking was inappropriately done. In view of the above the aspect of shortages of goods is established and the duty demand voluntarily paid by appellant No.1 without protest is required to be confirmed. So far as payment of interest on the confirmed demand is concerned, it is observed that shortage was detected on 12.08.2011 and the corresponding demand was also paid by appellant No.1 on the same day, therefore, there is no interest liability on appellant No.1 on this account. Clandestine removal of shortages detected and imposition of penalty - Held that:- in view of the settled propositions of law, the act of clandestine removal cannot be held to be established. Accordingly, no penalties can be imposed. - Decided partly in favour of appellant
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