https://www.taxtmi.com/caselaws?id=112165 Shortages found during search supported an undisputed duty demand, so that liability was maintained. Goods seized from the godown and factory were not liable to confiscation or redemption fine because the delivery challan, the explanation of return as defective goods, and the in-process status of factory stock were accepted, while the record did not establish the necessary mens rea for confiscation. A larger duty demand alleging clearance of manmade fabrics as cotton fabrics under an exemption notification failed because test reports and the statutory lot register supported the assessee, and the grey inward register and retracted statements were treated as unreliable. Penalties on individuals were set aside, and the assessee's penalty was reduced because only the shortage-based liability survived. en-us Fri, 25 Jun 2004 00:00:00 +0530 Thu, 26 Apr 2012 18:30:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112165 Shortages found during search supported an undisputed duty demand, so that liability was maintained. Goods seized from the godown and factory were not liable to confiscation or redemption fine because the delivery challan, the explanation of return as defective goods, and the in-process status of factory stock were accepted, while the record did not establish the necessary mens rea for confiscation. A larger duty demand alleging clearance of manmade fabrics as cotton fabrics under an exemption notification failed because test reports and the statutory lot register supported the assessee, and the grey inward register and retracted statements were treated as unreliable. Penalties on individuals were set aside, and the assessee's penalty was reduced because only the shortage-based liability survived. Case-Laws Central Excise Fri, 25 Jun 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112165