https://www.taxtmi.com/caselaws?id=153590 A demand based on shortage of raw material cannot be sustained unless the department proves diversion, non-receipt of the goods, or another basis showing non-discharge of duty by the supplier. Here, the shortage was explained by the manner of accounting and invoice weighment, and the available records were not properly verified or investigated. In the absence of evidence of diversion or an admission by the assessee, the burden remained on the department and was not discharged, so the demand failed. As the demand did not survive, the penalty under Rule 15(2) of the Central Excise Rules also fell away. en-us Fri, 14 May 2010 00:00:00 +0530 Thu, 25 Jul 2013 13:17:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=153590 A demand based on shortage of raw material cannot be sustained unless the department proves diversion, non-receipt of the goods, or another basis showing non-discharge of duty by the supplier. Here, the shortage was explained by the manner of accounting and invoice weighment, and the available records were not properly verified or investigated. In the absence of evidence of diversion or an admission by the assessee, the burden remained on the department and was not discharged, so the demand failed. As the demand did not survive, the penalty under Rule 15(2) of the Central Excise Rules also fell away. Case-Laws Central Excise Fri, 14 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=153590