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2016 (9) TMI 940 - AT - Central ExciseImposition of penalty - Section 11AC of Central Excise Act, 1944 - raw materials and finished goods - found short in the appellant premises - clandestine removal of goods - Held that:- it is a fact that Revenue is solely relying upon the shortages. There is virtually no other evidence to reflect upon the manufacture of appellant s final product, their transportation, recognition of the buyers and receipt of sales proceeds by allegedly clandestine removed goods. In the absence of such evidence and in the light of precedent decision of the Tribunal, which stand discussed in detail by the Commissioner (Appeals), the charges of clandestine removal cannot be held to have been established. The onus to prove clandestine removal is admittedly on the Revenue and is required to be discharged with production of sufficient evidence, which at least may lead to the probability of having removed the goods. As such, I am of the view that the findings arrived at by the lower authorities that shortages by itself cannot held to be clandestine removal of goods is appropriate decision, thus not requiring any interference with. Confiscation - Rule 15 of the Cenvat Credit Rules, 2004 and Rule 25 of the Central Excise Rules, 2002 - raw materials and scrap - found in excess quantity - Held that:- it is found that it stand recorded by the authorities below that there was no evidence to show that such non-recording in the statutory records was on account of any malafide. Neither were the goods in process of being removed nor is there any sufficient material to show that same were meant for removal without payment of duty. As such, I find no justification for the confiscation of the same as prayed for by the Revenue. - Decided against the Revenue
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