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2017 (10) TMI 1119 - AT - Central ExciseClandestine removal - Shortage of inputs and finished goods - substantiation of facts - Held that: - Shri Sandeep Maheshwari, authorised officer of the appellant has only stated that he is unable to explain the reasons of shortage. Such statement, without further corroboration, cannot be accepted as evidence of clandestine removal of goods, without payment of Central Excise duty - further, the stock verification was conducted on average basis, without consideration of the actual weighment of goods. Thus, it cannot be said that the stock position arrived at is correct and proper. No iota of evidence was produced by the department to prove that the goods found short during verification were removed clandestinely from the factory without payment of Central Excise duty - reliance placed in the case of CHANDPUR ENTERPRISES LTD. Versus COMMR. OF C. EX. & SERVICE TAX, MEERUT-I [2014 (8) TMI 970 - CESTAT NEW DELHI], where it was held that demand cannot be sustained, without substantiation of the fact of clandestine removal of goods - allegation of clandestine removal cannot be sustained. Appeal allowed - decided in favor of appellant.
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