Clandestine removal requires corroborative evidence: disputed stock shortages and a lone statement were insufficient to sustain excise demand.

Allegations of clandestine removal in central excise cannot be sustained on disputed stock shortages and a solitary director's statement without independent corroborative evidence. The Tribunal noted that the Revenue relied only on alleged shortages found during stock verification and the statement, while the appellant challenged the weighment process and the absence of weighment slips and inventories weakened the reliability of the shortages. It held that an admission is relevant but not conclusive, and a confessional statement alone cannot fasten liability where no other material supports clandestine clearance. On that basis, the demand and penalties were set aside.

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Issues: Whether the demand of central excise duty based on shortages found during stock verification and the director's statement alleging clearance of goods without invoices was sustainable in the absence of corroborative evidence.

Analysis: The Tribunal found that the Revenue's case rested only on alleged shortages noticed during the visit of officers and on the director's statement. It held that, where clandestine removal is alleged, the charge cannot be sustained without concrete supporting evidence. It also noted that the appellant disputed the manner of weighment, and that the absence of weighment slips and inventories weakened the reliability of the shortages. The director's statement, by itself, was held insufficient because an admission is an important piece of evidence but not conclusive, and a confessional statement cannot be treated as the sole basis for fastening liability in the absence of other material indicating clandestine removal.

Conclusion: The demand and penalties were not sustainable and were set aside.

Final Conclusion: The appeal succeeded and the appellant was granted consequential relief.

Ratio Decidendi: Allegations of clandestine removal cannot be upheld on the basis of disputed shortages and a solitary confessional statement unless supported by independent corroborative evidence.

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