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2016 (7) TMI 1029 - CESTAT NEW DELHI

2016 (7) TMI 1029 - CESTAT NEW DELHI - 2016 (340) E.L.T. 598 (Tri. - Del.) - Clandestine removal of goods - shortage of goods - Central Excise conducted stock verification of raw materials and finished goods - Held that:- apart from the allegation of shortage based on estimation, no other corroborative evidence is presented to show that possible clandestine manufacture, clearance, transport or buyers of such goods. - Demand set aside - Decided in favor of assessee. - Excise Appeal No.E/51345/016 .....

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s of Cenvat Credit Rules, 2004. In March, 2014, the officers of Central Excise conducted stock verification of raw materials and finished goods in the premises of the appellant. Upon such verification, the officers arrived at a shortage of 79.573 MTs of H.B. Wires (raw materials), 23.069 MTs of H.B. Wires (finished goods) short. Proceedings were initiated against the appellant for recovery of duty of ₹ 4,73,759/- on the ground that the said goods have been cleared without payment of duty. .....

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cked random bundles of wire and wire rods and after checking up the weight of 5 such bundles, took average and applied it to arrive at the total weight of the stock. The weight of the each bundle varies and arriving at the total stock weight by average method only give an approximation. No duty can be demanded on such rough estimation. (b) In the statement given before the officers, Shri Vikas Raika, Director did not admit to any shortage or unaccounted clearance of raw materials or finished goo .....

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the finished goods and raw materials, the officers did not verify the availability of goods in process (semi-finished goods); (d) There is no evidence adduced by the department regarding alleged unaccounted clearance of excisable goods by the appellant. The whole demand is based on the alleged shortage of raw materials based on the rough estimation. In absence of any evidence of illicit manufacture, unaccounted clearance, transport, etc., no duty demand can be sustained. (e) Reliance was placed .....

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inable. 5. Heard both the sides and examined the appeal records. 6. The only point for decision is that correctness of duty demand made against the appellant based on the stock verification of the goods. The admitted facts are that the appellant maintained all records and there has been no allegation of any irregularity on that account. The stock taking was conducted based on average weight of a few bundles of wire rods and H.B. wires. It is also an admitted fact that one bundle of H.B. Wires va .....

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