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2017 (12) TMI 597 - AT - Central ExciseClandestine removal - Whether for some discrepancy found in the quantity of stock of raw material and finished goods, than the recorded balance in the register, whether duty and penalty are being rightly imposed along with confiscation of the goods found in excess, and further order for release of goods on payment of redemption fine is tenable in the facts and circumstances of the case? Held that: - no actual weighment of the stock of raw materials and finished goods was made. Thus, the whole exercise was done by way of eye estimation as is evident from. Under such circumstances and method of stock verification, there is bound to be discrepancies - So far as stock of finished HR strips is concerned, the difference is of 33 MT against the recorded balance of 126.440 MT. Thus, there is difference of little more than 20%. I hold that in the case of eye estimation, which is admittedly the case, such variation and/or excess quantity computed does not lead to any adverse inference against the assessee. Further, as per the facts on record, there is no attempt by the appellant-assessee to remove the goods clandestinely. Admittedly, the finished goods were lying inside the factory. Appeal allowed - decided in favor of appellant.
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