https://www.taxtmi.com/caselaws?id=107026 Rule 223A of the Central Excise Rules, 1944 was construed as permitting periodic stocktaking only of fully finished excisable goods in stock, not fabrics under process. The text notes that shrinkage in fabric processing is a recognised phenomenon, so shortages in work-in-process cannot be treated as shortages of stock under that rule. Any action for discrepancies in finished goods may, in appropriate cases, be examined under Rule 173Q, but not on the basis of stocktaking of goods under process. Duty demand and penalty founded on that incorrect application of Rule 223A were stated to be unsustainable. en-us Tue, 10 Dec 2002 00:00:00 +0530 Sat, 17 Mar 2012 11:02:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=107026 Rule 223A of the Central Excise Rules, 1944 was construed as permitting periodic stocktaking only of fully finished excisable goods in stock, not fabrics under process. The text notes that shrinkage in fabric processing is a recognised phenomenon, so shortages in work-in-process cannot be treated as shortages of stock under that rule. Any action for discrepancies in finished goods may, in appropriate cases, be examined under Rule 173Q, but not on the basis of stocktaking of goods under process. Duty demand and penalty founded on that incorrect application of Rule 223A were stated to be unsustainable. Case-Laws Central Excise Tue, 10 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=107026