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2018 (2) TMI 394 - AT - Central ExcisePenalty - clandestine removal - shortage of finished goods - Held that: - the entire charge of clandestine removal of goods is based on labour attendance register. The Central Excise officers searched the factory premises and could not find any other corroborative evidence to link the said labour attendance register to alleged clandestine removal of goods. In my considered view, the charge of clandestine removal of goods cannot be sustained merely on the basis of labour attendance register, which is uncorroborative in nature. The Tribunal, in the case of Golden Steel Corporation Ltd. v. CCE, Kolkata-II [2016 (10) TMI 567 - CESTAT KOLKATA], observed that the clandestine removal of goods is a serious charge and cannot be held on the basis of presumption, assumption and surmises. In that case, the demand was raised on daily performance report of HR strips prepared by quality control incharge of the assessee recovered from its factory. The Tribunal set aside the demand. There is no material available on record of clandestine removal of the shortage material and the imposition of penalty under section 11AC of the Central Excise Act, 1944 is not warranted. Appeal allowed - decided in favor of appellant.
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