https://www.taxtmi.com/caselaws?id=2755 Grey yarn found in excess during stock verification was not liable to confiscation where the assessee produced prior invoices covering the entire stock and departmental verification found no discrepancy. In the absence of any established clandestine activity, and because the raw material was accounted for with no Cenvat credit availed or processing commenced at the time of inspection, confiscation was unwarranted. A penalty based on the same alleged unaccounted stock could not survive once the underlying allegation failed. The confiscation and penalty were therefore set aside. en-us Mon, 27 Aug 2007 00:00:00 +0530 Wed, 16 Apr 2008 10:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2755 Grey yarn found in excess during stock verification was not liable to confiscation where the assessee produced prior invoices covering the entire stock and departmental verification found no discrepancy. In the absence of any established clandestine activity, and because the raw material was accounted for with no Cenvat credit availed or processing commenced at the time of inspection, confiscation was unwarranted. A penalty based on the same alleged unaccounted stock could not survive once the underlying allegation failed. The confiscation and penalty were therefore set aside. Case-Laws Central Excise Mon, 27 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2755