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of <h1>Tribunal Upholds Decision on Stock Shortages & Clandestine Removal Allegations</h1> <h3>Commissioner of Central Excise, Puducherry Versus M/s. SAR Ispat Pvt. Ltd.</h3> Commissioner of Central Excise, Puducherry Versus M/s. SAR Ispat Pvt. Ltd. - TMI Issues Involved:1. Shortage of 24.2 MTs during stock taking.2. Alleged removal of four truckloads of ingots without invoices.3. Alleged removal of two truckloads of ingots without invoices.4. Unaccounted clearances based on documents from transporters.Issue-wise Detailed Analysis:1. Shortage of 24.2 MTs during stock taking:The department alleged a shortage of 24.2 MTs based on eye estimation during stock taking on 26.6.2003. The Commissioner (Appeals) found that no physical stock weighing was conducted, making the eye estimation unreliable. The Tribunal agreed, stating that without actual weighing, the shortage claim lacks credibility.2. Alleged removal of four truckloads of ingots without invoices:The department relied on slips recovered from the factory gate, alleging the removal of 64.92 MTs of ingots on 25.6.2003. The Commissioner (Appeals) noted that no investigation was conducted at M/s. Bhuwalka Industries to verify the receipt of goods. The Tribunal found that the slips did not contain exact quantities and were not corroborated by evidence, thus agreeing with the Commissioner (Appeals) that these private records were unreliable.3. Alleged removal of two truckloads of ingots without invoices:Similar to the previous issue, the department alleged removal based on slips recovered from the factory gate. The Tribunal found that the department did not provide sufficient evidence to corroborate these claims, agreeing with the Commissioner (Appeals) that the slips alone were insufficient to prove clandestine removal.4. Unaccounted clearances based on documents from transporters:The department relied on statements and documents from transporters (TAT, RLT, STR) to allege unaccounted clearances. The Commissioner (Appeals) found that no corresponding lorry receipts were recovered, and no customers were contacted to verify the receipt of goods. The Tribunal agreed, noting that the evidence was based on assumptions and lacked corroborative support. The Tribunal also highlighted that the respondents provided evidence linking some clearances to accounted transactions, further weakening the department's case.Conclusion:The Tribunal upheld the order of the Commissioner (Appeals), finding no infirmity in the decision to set aside the demand and penalties. The appeal filed by the department was dismissed, emphasizing the need for corroborative evidence in cases of alleged clandestine removal. The judgment underscores that serious charges like clandestine removal require substantial proof beyond private records and assumptions.
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