https://www.taxtmi.com/caselaws?id=112838 Shortage of finished goods found during physical verification, recorded size-wise in the panchnama and extending beyond mere weight variance to actual missing quantity, was treated as supporting an inference of clandestine removal; on that basis, duty demand was upheld. A tolerance margin may apply to weight, but not to the physical number of goods found short. The show cause notice specifically alleging clandestine removal also supported invocation of the extended limitation period under the proviso to Section 11A(1) of the Central Excise Act. Penalty was not sustained at the original level and was reduced in light of the facts and circumstances. en-us Mon, 15 Dec 2003 00:00:00 +0530 Wed, 02 May 2012 10:37:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112838 Shortage of finished goods found during physical verification, recorded size-wise in the panchnama and extending beyond mere weight variance to actual missing quantity, was treated as supporting an inference of clandestine removal; on that basis, duty demand was upheld. A tolerance margin may apply to weight, but not to the physical number of goods found short. The show cause notice specifically alleging clandestine removal also supported invocation of the extended limitation period under the proviso to Section 11A(1) of the Central Excise Act. Penalty was not sustained at the original level and was reduced in light of the facts and circumstances. Case-Laws Central Excise Mon, 15 Dec 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112838