9911796707
TMI Blog2017 (3) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing in the RG-1 stock with the stock appearing in the 3 CD report and the balance sheet. The case of the department is that since there is no dispute in the shortage, the excise duty on the finished goods and the Cenvat Credit on the inputs is recoverable. Accordingly, the adjudicating authority confirmed the demand of Rs. 66,219/- in respect of shortage of inputs and confirmed the Central Excise duty demand of Rs. 21,83,357/- pertaining to the shortage of finished goods for the period 2001-02. Equal amount of penalty was also imposed under erstwhile Rule 173Q of the Central Excise Rules 1944/Rule 13 of the Cenvat Credit Rules, 2001 read with Section 11AC of the Central Excise Act, 1944. Being aggrieved by the order-in-original dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sposed of out of the factory of the appellant. Therefore, without any evidence of removal of inputs and/or finished goods, merely on the basis of the difference between the excise records and financial records demand cannot be made. Moreover, there is a different method of accounting the stock in the financial accounts and RG-1 record. The very same issue has been decided in the appellant s own case vide this Tribunal order dated 12/05/2016 and order dated 30/12/2016 wherein the Tribunal has passed the following order: 4. We have gone through the rival submissions. We find that in the instant case while there is allegation of clandestine clearance on the basis of shortages found, no stock verification has been done nor any evidence of clan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Hon'ble Supreme Court. In the instant case, the facts are similar. The entire case has been booked on the mismatch between the figures reported in 3CD returns filed with Income Tax authorities and the RG-1 register and there has been no physical verification of stock. There is no evidence of any clandestine clearance being made. Moreover the criteria for recording stocks as per the standards of ICAI and Income Tax are different from the criteria for recording stocks under Central Excise law. In these circumstances, the two figures cannot be alleged and compared. 5. Relying on the decision of the Tribunal in the case of Shree Precoated Steel (supra) affirmed by the Hon'ble Supreme Court, the impugned order is set aside and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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