https://www.taxtmi.com/caselaws?id=270686 Excise duty demands based only on internal stock discrepancies cannot be sustained unless the record contains a clear, reasoned finding that goods were actually removed from the factory or clandestinely cleared. The High Court noted that the Tribunal had not properly evaluated the assessee's explanation on manufacturing process, work-in-progress and stock-taking methodology, and had not assessed the evidence with sufficient clarity. Penalty under Section 11AC of the Central Excise Act also requires a proper factual foundation of fraudulent suppression or clandestine removal; absent that, penalty cannot stand. The Tribunal's order was set aside and the matter remanded for fresh adjudication on duty liability and penalty. en-us Thu, 10 Dec 2015 00:00:00 +0530 Fri, 13 May 2016 10:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=270686 Excise duty demands based only on internal stock discrepancies cannot be sustained unless the record contains a clear, reasoned finding that goods were actually removed from the factory or clandestinely cleared. The High Court noted that the Tribunal had not properly evaluated the assessee's explanation on manufacturing process, work-in-progress and stock-taking methodology, and had not assessed the evidence with sufficient clarity. Penalty under Section 11AC of the Central Excise Act also requires a proper factual foundation of fraudulent suppression or clandestine removal; absent that, penalty cannot stand. The Tribunal's order was set aside and the matter remanded for fresh adjudication on duty liability and penalty. Case-Laws Central Excise Thu, 10 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=270686