https://www.taxtmi.com/caselaws?id=2004 Duty on shortage of finished goods detected during stock verification may be sustained where the assessee cannot show lawful removal or proper accounting of the missing stock, and an admission of shortage supports the demand. However, where the discrepancy is found on physical verification and there is no clear proof of clandestine removal, the higher penalty under Section 11AC or Rule 25 need not be imposed in full, and a reduced penalty may be appropriate. On these facts, the duty demand was maintained but the penalty was substantially reduced. en-us Wed, 25 Apr 2007 00:00:00 +0530 Tue, 15 Apr 2008 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2004 Duty on shortage of finished goods detected during stock verification may be sustained where the assessee cannot show lawful removal or proper accounting of the missing stock, and an admission of shortage supports the demand. However, where the discrepancy is found on physical verification and there is no clear proof of clandestine removal, the higher penalty under Section 11AC or Rule 25 need not be imposed in full, and a reduced penalty may be appropriate. On these facts, the duty demand was maintained but the penalty was substantially reduced. Case-Laws Central Excise Wed, 25 Apr 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2004