TMI Blog2014 (7) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... CESTAT, BANGALORE] has held that the information received from the Income tax Department cannot be made the sole basis for confirmation of demand under the Central Excise when the Central Excise authorities in their investigations did not find any corroborative evidence of clandestine removal of their final products - Decided against Revenue. - Appeal Nos. E/336 & 337/2010 -EX[SM] - Final Order Nos._50458-50459 - Dated:- 23-1-2014 - Mrs. Archana Wadhwa, J. For the Petitioner : Shri RK Mishra, DR For the Respondent : Shri Bipin Garg, Advocate JUDGEMENT Per Hon ble Mrs. Archana Wadhwa : Being aggrieved with the order passed by the Commissioner (Appeals), Revenue has filed the present two appeals. I have heard Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he book. As against stock of 662.545MT in the book only 513.480 MT of finished goods were lying in the factory premises. Thus there was shortage of 149.065 MT of finished goods. The appellant have submitted that in fact there was no difference in the stock as the income tax authorities has erred in taking entire stock lying the factory. Their argument is that the Income tax officers had overlooked some lot of finished goods during physical verification and the demand is not based on actual weightment but is based on wrong stock taking. In this regard I find that the method of physical verification of stock has not been mentioned neither in the show cause notice nor in the impugned order. In view of the above, I have no option but to accept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect the seizure of excess stock and then to proceed to decide it on merits, which was not followed on any stage. Similarly if any shortage was intimated by Income Tax Authorities the same was to be verified either from the books of accounts or by officers. Similarly no steps were taken to prove the clandestine removal of goods detected as shortage by Income Tax Authorities by bringing out evidence of receipt of excess raw material used in manufacture of clearance of alleged clandestinely removed goods found to be short in stock, any transportation evidence and in the last flow back of money received from clandestine removal of alleged short detected goods. Here one should not forget that distance between may be true and must be true is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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