TMI Blog2016 (6) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... adjusted in the de novo proceedings, which only shows that the original stock taking and demand notice based on such verification was not fully correct. When the appellant sought re-verification by the Bond officer, the very next day along with the reasons for their request, it is apparent that such re-verification could have brought out the truth of the correct stock clearly. Appreciating the available evidence in the case, the demand of central excise on account of clandestine removal solely based on the alleged shortage of excisable goods cannot be sustained. Mis-match between the entries in the log book of the packing department and entries in the RG-I - Held that:- As already noted, 7 out of 14 entries indicate higher quantity of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anna, DR ORDER PER B. RAVICHANDRAN: These two appeals which arise against the same order-in-appeal and are accordingly taken up together for disposal. 2. The brief facts of the case are that the appellants are engaged in the manufacture of cotton yarn and polyester yarn of different counts liable to central excise duty. Officers of Central Excise, Jaipur conducted physical stock verification in the premises of the appellant on 27.09.2001. Upon finding certain excess as well as less quantities of different types of yarn, further investigations were conducted. Proceedings were initiated against the appellant vide show cause notice dated 15.09.2003. The case was adjudicated by the Original Authority on 10.11.2004. On appeal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel emphasized that Shri Burad in his statement dated 27.09.2001 has never admitted any clandestine clearance of the dutiable items. He only signed the mahazar and admitted to the correctness of shortage /excess as recorded in the mahazar. He retracted his statement in the morning of the next day 28.09.2001 and sent his retraction to Divisional Officer as well as Commissioner. In the absence of any evidence of clandestine removal of materials, identity of person to whom such materials were sold etc., the allegation of clandestine removal cannot be sustained. It was further argued that on 28.09.2001 itself the appellant sought re-verification of physical stock as the stock taking was not done properly the previous day. Loose stock lying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rroborative evidence for illicit clearance. 6. Ld. AR contested the submission of appellant. He submitted that the statement of Shri Burad has been accepted as true by the Managing Director even after a gap of almost 18 months. The appellant could not satisfactorily explain a shortage and also the various entries in the log book maintained in the packing department. 7. Ld. AR further indicated that on de novo proceedings, the Original Authority considered the appellant s claim regarding issue of 1000 kgs. of yarn for doubling and accordingly, reduced the demand. The present impugned order of the Commissioner (Appeals) cannot be faulted. 8. Heard both the sides and examined the appeal records. 9. The point for decision in these a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Barud, which was retracted within a day. The reliance of the Original Authority on the statement of Managing Director will not also establish a case of clandestine removal against the appellant. While relying on the statement of Managing Director given on 19.03.2003, the Original Authority did not give much credence to the retraction within a day given by Shri Barud as well as the request of the Company for re-verification of the stock on the very next day. Even in the statement of the Managing Director, there is no indication or corroboration regarding any possible clandestine clearance of excisable goods. 10. The Hon ble Punjab Haryana High Court in the case of Commissioner of Central Excise Service Tax , Ludhiana Vs. Anand Found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or examination of such entries are found in the impugned order. Further, I find that the log book in the packing department shows two entries for packing during day/night. The appellants submitted that the unit works in three shifts and there is no correlation between the log book or packing material and the RG-I on a day-to-day basis. Further, the log book maintained in the packing department is apparently due to the requirement of ISO Standards and the quantity mentioned as per older version of the format is for instructions of packers. In any case, if reliance has to be placed on the log book for issue of packing materials, for alleging clandestine removal of excisable goods without entering in the records, corroboration is required to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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