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2016 (6) TMI 227 - AT - Central ExciseCentral excise duty evasion on yarn by way of unaccounted clearance - shortage of excisable goods - Held that:- As decided in Commissioner of Central Excise & Service Tax , Ludhiana Vs. Anand Founders & Engineers (2015 (11) TMI 1166 - PUNJAB & HARYANA HIGH COURT ) clandestine removal cannot be established only on the basis of shortage of materials detected at the time of stock taking by the officers. Mere shortage detected cannot ipso facto lead to the allegation and findings of the clandestine removal. In the present case, as noticed that even the shortage originally found on stock taking was later adjusted in the de novo proceedings, which only shows that the original stock taking and demand notice based on such verification was not fully correct. When the appellant sought re-verification by the Bond officer, the very next day along with the reasons for their request, it is apparent that such re-verification could have brought out the truth of the correct stock clearly. Appreciating the available evidence in the case, the demand of central excise on account of clandestine removal solely based on the alleged shortage of excisable goods cannot be sustained. Mis-match between the entries in the log book of the packing department and entries in the RG-I - Held that:- As already noted, 7 out of 14 entries indicate higher quantity of production entered in the RG-I when compared to the log book in the packing department. No comments or examination of such entries are found in the impugned order. Further, find that the log book in the packing department shows two entries for packing during day/night. Further, the log book maintained in the packing department is apparently due to the requirement of ISO Standards and the quantity mentioned as per older version of the format is for instructions of packers. In any case, if reliance has to be placed on the log book for issue of packing materials, for alleging clandestine removal of excisable goods without entering in the records, corroboration is required to support such allegation. In the present case, there is absolutely no corroboration and the demand is made only on the basis of certain comparison between a non-statutory record maintained for packing materials and the entries in the statutory records, RG-I. Find that no corroboration of any nature has been brought out by investigation to support the allegation of clandestine removal of unaccounted goods. As such, the impugned order is not legally sustainable and accordingly, the same is set aside. - Decided in favor of assessee.
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