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2019 (10) TMI 1143 - AT - Central ExciseClandestine removal - non-accountal of excess goods found - cross-examination not carried out - HELD THAT:- Admittedly the goods were lying in the factory and subsequently recorded in the RG-1 register. Therefore, for any goods lying in factory, duty demand does not arise. Non-accounting and consequent confiscation of excess stock found during visit of the officers - HELD THAT:- Both, Shri Santosh Shrivastav, Production Manager and Shri Rajiv Thadani, Director of appellant Company in their respective statements recorded under Section 14, stated that non-accountal of excess found goods is due to technical snag in the computer software and for this reason, production record could not be generated for the period 01 January 2014 to 06 January 2014 and because of this reason, RG-1 register could not be updated. Admittedly, there is no investigation by the Revenue on these categorical statements given by the appellant’s employees and no evidence has been brought on record that non-accounting of finished goods is with intention to clear the goods clandestinely for evasion of duty. There is no evidence of attempt to clear the goods clandestinely but there is contravention of the provisions inasmuch as the appellant have not recorded the excisable goods in the statutory record - Duty demand is set-aside. However, the duty liability arise as and when the goods are cleared from the factory. Confiscation of goods and consequent redemption fine are also set-aside - Penalty imposed under Rule 25 of Central Excise Rules, 2002 is reduced - penalty imposed on Shri Rajiv Thadani is set-aside - Appeal allowed in part.
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