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2020 (4) TMI 376 - AT - Central ExciseClandestine removal - Shortage in stock - Abnormal loss or normal loss on stock verification - the demand has been raised on account of alleged shortage in the quantity of copper metal of 1.290 MT, sulphuric acid of 1.075 MT and also alleged shortage of 54.411 MT of copper in the smelter plant - Extended period of limitation - HELD THAT:- The discrepancy (shortage) is a normal loss arising due to various factors like handling loss, evaporation loss (moisture content), calculation error (as admittedly ore is estimated as regards the quantum of production and quantum received in the concentrate plant). The cogent explanation given by the appellant has not been found to be untrue by the Court below. Accordingly, the SCN is misconceived and further the Court below has erred in not considering the normal loss, that the same requires no treatment in the books of accounts. Further, there is no single instance of clandestine removal on the part of the appellant. Appeal allowed - decided in favor of appellant.
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