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2021 (7) TMI 327 - AT - Central ExciseClandestine Removal - M.S. Billets - pig iron - difference in the declared stock and physical stock beyond tolerance limit - corroborative evidence to allege that the apparent shortage is due to clandestine removal, present or not - HELD THAT:- The method of stock verification adopted by the Revenue in this case (during inspection) is not correct and free from error. Further, such stock taking is not provided under the scheme of the Central Excise Act read with the Rules. Further, it is found that the appellant has given cogent explanation for the apparent shortage, which has not been found wrong by the court below. Further, such apparent shortage is less than 1% in case of M.S. Billets and about 3% in case of Pig Iron, which is within the tolerance limit in this type of industry - Save and Except the bald allegation made by the Revenue of clandestine removal, there is no other allegation in the show cause notice as regards the quantitative mismatch of input output ratio, etc. Hon’ble High Courts and this Tribunal have repeatedly held that insignificant shortage in the stock of raw materials and finished goods does not lead inevitable evidence of clandestine removal, in absence of corroborative material on record. Appeal allowed - decided in favor of appellant.
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