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2018 (7) TMI 318 - AT - Central ExciseClandestine removal - irregular maintenance of stock record - Contention of the department is that the appellant did not have the capacity to produce goods which allegedly were found in excess - Held that:- The appellant had stated before the adjudicating authority that the alleged excess production of 827MT of MS Ingots was nothing but the accumulated production of preceding months which were not accounted for properly. However, the appellant has failed to produce any evidence to support their statement. It had been observed by the adjudicating authority that the bank transactions, as indicated by the bank statement, had recorded the purchase of raw material and sale of finished goods, however, the transactions could not be verified against the relevant statutory register due to the negligence on the part of the appellant in not maintaining proper records, which contravenes the provisions under Rule 10 of the Central Excise Rules, 2002 - demand upheld. Penalty u/r 26 - Held that:- It has been stated that he had no knowledge of the alleged irregularity. In any event, the appellant No. 2 had deposited the duty suo moto during the investigation - the Revenue has failed to establish, beyond reasonable doubt, that the appellant No. 2 has contravened any of the provisions under Rule 26 of the Rules - penalty not justified. Appeal allowed in part.
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