https://www.taxtmi.com/caselaws?id=53135 Duty demand, penalty and interest cannot be sustained merely on the basis of a stock shortage noted by statutory auditors where there is no independent departmental stock verification or other corroborative evidence of clandestine removal. The recorded discrepancy was treated as insufficient by itself to prove evasion, particularly where the assessee's explanation of calibration differences and book adjustments was accepted in the absence of contrary proof. A finding of clandestine removal requires evidence beyond an auditor's note or an isolated stock variation. On these facts, the demand and consequential penalties were set aside in favour of the assessee. en-us Mon, 19 Jul 2004 00:00:00 +0530 Mon, 11 Oct 2010 12:31:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53135 Duty demand, penalty and interest cannot be sustained merely on the basis of a stock shortage noted by statutory auditors where there is no independent departmental stock verification or other corroborative evidence of clandestine removal. The recorded discrepancy was treated as insufficient by itself to prove evasion, particularly where the assessee's explanation of calibration differences and book adjustments was accepted in the absence of contrary proof. A finding of clandestine removal requires evidence beyond an auditor's note or an isolated stock variation. On these facts, the demand and consequential penalties were set aside in favour of the assessee. Case-Laws Central Excise Mon, 19 Jul 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53135