TMI Blog2012 (11) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... cted any investigation so as to find out the alleged buyers of the said raw material or final product & no questions were put to Shri Jain as to what has happened to material found short. Thus admission on the part of assessee about the short found raw material by itself is no ground for arriving at an adverse finding against the assessee. As decided in Commissioner of Central Excise Kanpur vs. Minakshi Castings [2011 (8) TMI 896 - ALLAHABAD HIGH COURT] shortages of finished stock without evidence of clandestine removal cannot lead to inference of evasion of duty - in favour of assessee. - Excise Appeal No. 2033 of 2010 SM - - - Dated:- 4-10-2012 - Ms. Archana Wadhwa, J. Appearance: Shri Jatin Mahajan, Advocate for the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficers it is clarified that the raw material lying in store room was taken into account and the raw material lying in other parts of the factory was not taken into consideration as the officers were of the view that the inputs kept outside the store should have been shown as issued from RG 23 A part I. As such, the request made to the officers to verify the entire stock of raw material lying in the premises. In any case, submits the learned advocate that apart from the shortages, there is no other evidence available on record indicating the removal of the said PVC resins or utilisation of the same in the manufacture of final product, not recorded in their statutory records. By relying upon various precedent decisions, he submits that the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the appellant. In fact in his statement, he has stated that he was not aware of the reasons for such shortages. As such, without going to the disputed issue, as to whether the said statement was retracted subsequently or not, I am of the view that said statement of Shri Jain is not at all inculpatory as he has not admitted any clandestine activity. Revenue has not further conducted any investigation so as to find out the alleged buyers of the said raw material or final product, if any. In fact, I find no questions were put to Shri Jain as to what has happened to material found short. Even the panchnama recorded by the visiting officers does not reveal that the entire factory was put to search. 7. There are number of decisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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