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2016 (6) TMI 769 - HC - Central ExciseEstimation of substantial shortage of goods through visual joint stock verification - accurate verification of the stock was not conducted - Anomaly in the show cause notice - Held that:- There is no doubt that in course of the joint verification of the stock at the petitioner’s manufacturing facility conducted on September 22-23, 2015 substantial shortage of goods was discovered. However, such discovery has not culminated in any adjudication finding the petitioner guilty of actually evading duty. The demand raised by the authorities has been promised to be paid by the petitioner, though only a third of the amount may have been tendered by now. The petitioner only knows that stock shortage was discovered in course of the raid in September, 2015, but the petitioner is not aware of any other misgivings that the authorities may harbour against the petitioner. Since the opportunity afforded to the petitioner appears to have been a meaningless exercise without the petitioner being confronted with the material against the petitioner as may have been contained in the proposal forwarded by the Durgapur Commissionerate to the Chief Commissioner, the order impugned dated March 15, 2016 cannot be sustained. Accordingly, such order is liable to be set aside. However, since it is evident that the petitioner has not tendered payment of the entire sum of ₹ 1,50,05,658/- pursuant to the joint stock verification conducted in September, 2015, the order of March 15, 2016 will remain unconditionally stayed till the close of working hours of April 5, 2016 and, thereafter, the same will stand set aside, subject to the entire balance payment in respect of the above amount having been tendered by the petitioner to the respondent authorities. Matter remanded back.
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