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2017 (5) TMI 609 - AT - Central ExciseShortages of goods - clandestine removal - Polyster Texturised Yarn - demand of duty - penalty - Held that: - The demands are based upon the comparison of computer sheets with the RG -1 and also some of the shortages was arrived at physical verification. The statements of the Assistant Manager Shri Madhusudan Tibrewalla has been relied upon to show that since he had accepted the shortage in case of some of the goods, hence duty is payable - it is not the case of the revenue that the goods were not returned back to Silvassa Unit after jobwork or that the goods were cleared elsewhere without payment of duty. Even the GRN and delivery challans related to processing of goods were not held to be forged or invalid which clearly shows that the goods were indeed jobwork goods. In such case when there is no evidence of goods elsewhere, there is no reason to uphold the demand against Appellant Unit - The absence of challan or documents towards reprocessing cannot be a ground to allege shortages and demand duty - Mere shortages in stocks would not ipso facto lead to demand on account of clandestine removal. No evidence in the form of procurement of any excess raw material, production of goods, clearance and transportation evidence of such alleged short found quantity, receipt of consideration on account of clandestine clearance has been brought on record. Since in the present case no evidence of clandestine removal of goods has been brought on record by supporting corroborative evidences, there is no merit in the impugned order - demand set aside - appeal allowed - decided in favor of appellant.
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