TMI Blog2018 (9) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... . As such the fact that the raw materials were found in excess in the said new premises cannot be ignored. Inasmuch as the raw materials were in excess at the new premises, the shortages detected by the officers at the registered premises were not real, but pseudo shortages - thus, it cannot be concluded that short found raw materials have been used in the manufacture of the final product. The findings of clandestine removal on the basis of shortages detected by the visiting officers cannot be upheld. Appeal allowed - decided in favor of appellant. - E/811/2012-EX[DB] - A/71786/2018-EX[DB] - Dated:- 19-7-2018 - MRS. ARCHANA WADHWA, MEMBER(JUDICIAL) And SHRI ANIL G. SHAKKARWAR, MEMBER(TECHNICAL) Shri Rajesh Kumar (Advocate) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice dated 05.03.2008 were initiated proposing confiscation of the same. The said proceedings resulted in passing of an order by the Assistant Commissioner confiscating the goods and imposing penalties. The same are not the subject matter of the present appeal. 3. As a result of stock verification at the registered premises at E-63 64, the goods were found short. The raw material flavor was a Cenvatable raw material whereas saffron was non-Cenvatable. From the said shortages, Revenue entertained a view that the short-found raw materials have been used in the manufacture of the final product which stand removed in a clandestine manner. Accordingly proceedings were initiated under show cause notice dated 13.12.2012 proposing confirmatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact that the raw materials were found in excess in the said new premises cannot be ignored. Inasmuch as the raw materials were in excess at the new premises, the shortages detected by the officers at the registered premises were not real, but pseudo shortages. As such it cannot be concluded that short found raw materials have been used in the manufacture of the final product. 6. Otherwise also we find that the findings of clandestine removal on the basis of shortages detected by the visiting officers cannot be upheld as observed by the Hon ble Allahabad High Court in the case of Commissioner v. Meenakshi Castings [2011 (274) ELT 180 (All.)] as also in the case of CCE, Chandigarh v. Nachiketa Paper Ltd. [2008 (225) ELT 194 (P H). As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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