2018 (1) TMI 102

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..... evenue ORDER Per: Mrs. Archana Wadhwa The appellant is engaged in the manufacture of ingots, which are being captively consumed by them in the manufacture of their final product i.e. angle, channels, plates etc. 2. Their factory was visited by Central Excise Officers on 20.01.2012, who conducted various checks and verifications. As a result of stock verification of M.S. Ingots, the same were f .....

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..... itable conclusion of the clandestine removal. The Commissioner (Appeals) disposed of the appellants appeal by observing as under : "However, every case of shortage cannot be presumed to be a case of clandestine removal in the absence of other evidence corroborating the same. The fact of such shortage cannot ipso facto be held to be relatable to clandestine activities. Clandestine activities are .....

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..... es to prove clandestine removal, penalty imposed by the adjudicating authority is not sustainable." 5. After observing as above, the appellate authority proceeded ahead to confirm the demand by observing as under : "It is seen that the entire case is based upon the shortage detected at the time of the visit of the officers. The appellant has vehemently contested the fact of shortage on the groun .....

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..... at date. The total number of M.S. Ingots was then multiplied with the average of one M.S. Ingot and actual weight of stock of M.S.Ingots was thus arrived at. This stock when compared with the book balance of M.S. Ingots resulted in shortage of 314.440 MT of impugned goods. It will not be out of place to state that the weighment was done in a systematic way by dividing the ingots according to their .....

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..... , cannot be ground for confirmation of the same. The appellate authority after observing in favour of assessee on the issue of clandestine manufacture and removal, should have set aside the demand also. In view of the above, I find no justifiable reason to confirm the demand. The same is accordingly set aside and the appeal is allowed. Dictated and pronounced in the open Court
Case laws, Deci .....

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