TMI Blog2017 (6) TMI 716X X X X Extracts X X X X X X X X Extracts X X X X ..... and cannot be sustained in the absence of any allegation of clandestine removal. Appeal allowed - decided in favor of appellant. - E/159/2006 - 40946/2017 - Dated:- 15-6-2017 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri M. Karthikeyan, Advocate For the Appellant Shri K. Veerabhadra Reddy, JC (A.R) For the Respondent ORDER Per Bench The appeal is against the OIA No.105/2005 dt. 23.11.2005. Appellant is a 100% EOU manufacturing gas lighters. Appellant procured their raw material either indigenously or imported the same and availed the benefit of Notification No.1/95-CE or 53/97-Cus. as the case may be. The annual stock taking of the physical inventory was made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es as well as excesses which clearly indicates that the differences have arisen due to accounting error and there is no actual physical shortage. Hence demand is not sustainable. 4.3 The Profit Loss Account of the appellant indicates that the total consumption of materials during the said year is about ₹ 727 lakhs. Howeever, shortage of materials worked out to only about ₹ 2.7 lakhs which is only 0.36% of the imported materials consumed in terms of value. Since there is nothing brought on record to suggest that either inputs or finished products have been clandestinely cleared, there is no justification to demand duty on such shortage of materials. 4.4 He also relied upon following case laws : (i) CCE Ludhiana Vs Aa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t being manufactured for export by the appellants are gas lighters. From the long list of excess/shortage of various components, it is seen that a disproportionate large number of components account for a miniscule value, for example, in respect of one of the components R.V. Locking ring, the difference in quantity found is 2,20,002. However, the total difference in value is worked out to ₹ 6914/-. We also note that both shortages as well as excesses have been noticed. Considering the extremely tiny nature of the inputs, the contention of the appellant that accounting of such items in terms of number is not feasible and there is bound to be some difference between the numbers accounted merits acceptance. It is further seen that the to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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