Tribunal grants relief to appellant, overturns demand & penalty due to lack of evidence.

The Tribunal set aside the demand confirmation and penalty imposition on the appellant due to a shortage of inputs, as the Revenue failed to provide evidence of input clearance without duty payment, relying solely on the appellant's internal stock reconciliation. The appeal was allowed, granting consequential relief to the appellant.

---

---

Issues:
Shortage of inputs leading to demand confirmation and penalty imposition.

Analysis:
The case involved the appellant, engaged in manufacturing Polyster Film, availing Cenvat credit on duty paid inputs and Service Tax on input services. An audit objection revealed a shortage of inputs in the appellant's factory, leading to proceedings resulting in demand confirmation and penalty imposition. The original adjudicating authority's decision was upheld by the Commissioner (Appeals), prompting the present appeal.

During the proceedings, the Revenue relied on the appellant's internal stock taking inventory to establish the shortage of inputs. The appellant contested the shortage, providing a reconciliation statement to the Tribunal. The Revenue's case hinged on the appellant's inventory, with no evidence of non-receipt or clearance of inputs without duty payment. The Tribunal found no justification for confirming the demand or imposing a penalty based solely on the appellant's stock reconciliation, as there was no evidence of input clearance without duty payment. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief granted to the appellant.

---