2004 (10) TMI 180 - AT - Central Excise

Tribunal overturns duty demand decision due to verification uncertainties and discrepancies in stock quantities.

The Tribunal ruled in favor of the appellant in a case involving duty demand, confiscation, and penalty based on shortages and excesses found during stock ... Demand - Clandestine removal Issues involved: Duty demand, confiscation, and penalty based on shortages and excesses found during stock taking.In the present case, the appellant challenged the duty demand, confiscation, and penalty imposed due to shortages and excesses discovered during stock taking at the factory. The shortages mainly included G.P. Coil, G.P. Sheets, and waste and scrap, while the excess was primarily in C.R. Coils. The appellant contended that the alleged shortages and excesses could be due to errors in quantity calculations as no working sheet was provided to verify the discrepancies. Despite objections raised by the appellant, lower authorities upheld the findings based on the signed Panchanama. The appellant cited a previous case where the Tribunal set aside similar findings due to doubts in the verification method. During the hearing, it was noted that the verification process suffered from uncertainties, leading to the benefit of doubt being in favor of the appellant.The Tribunal observed that the verification conducted on two different dates showed similar uncertainties, as highlighted in a previous order related to the appellant's case. Considering the doubts raised regarding the verification process and discrepancies in stock quantities, the Tribunal ruled in favor of the appellant, setting aside the impugned order.