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2018 (6) TMI 118 - AT - Central ExciseClandestine manufacture and removal - Non payment of duty - shortage of raw materials and finished goods - demand also on the basis of electricity consumption - Held that:- There was shortage of raw materials and finished goods during the course of investigation. No physical verification of stock has been produced by the Revenue in the form of weightment slips or weighment chart and how weighment was done during the short span of time in a single day for both the units. In that circumstance, the allegation of shortage of raw materials and finished goods against the assessee M/s. M/s.BSRML and M/s. BSPL is not sustainable - demand on this count set aside. Demand on the basis of electricity consumed during the impugned period - Held that:- On perusal of comparative figures of production and electricity consumption per MT, it reveals that there was no abnormal consumption of electricity during the impugned period, the average consumption of electricity is more or less is same. Therefore, no demand is sustainable for the period March, 2005 to February, 2006 and further March, 2007 to June, 2007 - Moreover, the Revenue has not come forward with any corroborative evidence how raw material was procured and how the goods were transported. In that circumstance, the demand against the assessee sought to be confirmed on the basis of assumptions and presumptions - As no corroborative evidence brought on record, the demand against M/s.BSRML is not sustainable and is set aside. Demand raised against M/s. BSPL on account of shortage of inputs and finished goods - Held that:- Stock verification was done by eye estimation. Neither any physical verification carried out nor weighment slips nor weightment chart were prepared to arrive at actual shortage. In that circumstance, the demand raised on account of shortage of raw material and finished by eye estimation is not sustainable. Penalty on Shri Amarjeet Singh Bedi, Director - Held that:- As no demand raised against the main assessee M/s.BSRML and M/s.BSPL on account of shortage or clandestine removal of goods, no penalty is imposable on Shri Amarjeet Singh Bedi, Director. Appeal allowed - decided in favor of appellant.
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