https://www.taxtmi.com/caselaws?id=126336 Mere shortage of finished goods, where the assessee attributed the discrepancy to a faulty accounting method and the record showed no evidence of clandestine removal, does not justify penalty under Section 11AC of the Central Excise Act, 1944. The adjudicating authority treated the matter as shortage simplicitor rather than clandestine manufacture or removal, and that factual basis did not support invocation of the enhanced penalty. The Commissioner (Appeals) therefore erred in sustaining the enhancement, and the penalty was set aside, granting relief to the assessee. en-us Fri, 24 Apr 2009 00:00:00 +0530 Mon, 05 Nov 2012 16:33:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=126336 Mere shortage of finished goods, where the assessee attributed the discrepancy to a faulty accounting method and the record showed no evidence of clandestine removal, does not justify penalty under Section 11AC of the Central Excise Act, 1944. The adjudicating authority treated the matter as shortage simplicitor rather than clandestine manufacture or removal, and that factual basis did not support invocation of the enhanced penalty. The Commissioner (Appeals) therefore erred in sustaining the enhancement, and the penalty was set aside, granting relief to the assessee. Case-Laws Central Excise Fri, 24 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=126336