https://www.taxtmi.com/caselaws?id=54764 Excess stock found during stock verification does not by itself justify confiscation or penalty under Rule 173Q of the Central Excise Rules, 1944. The note applies the principle that penal provisions must be strictly construed and that some material showing clandestine removal, attempted evasion, or relevant intent is required. Where the stock difference was only estimated, had accumulated over time, the factory had remained closed for years, and there was no evidence of intended illegal removal, the discrepancy was treated as non-maintenance of accounts rather than a penal breach. Confiscation and penalty were therefore considered unwarranted on those facts. en-us Mon, 24 Oct 2005 00:00:00 +0530 Thu, 28 Mar 2024 20:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54764 Excess stock found during stock verification does not by itself justify confiscation or penalty under Rule 173Q of the Central Excise Rules, 1944. The note applies the principle that penal provisions must be strictly construed and that some material showing clandestine removal, attempted evasion, or relevant intent is required. Where the stock difference was only estimated, had accumulated over time, the factory had remained closed for years, and there was no evidence of intended illegal removal, the discrepancy was treated as non-maintenance of accounts rather than a penal breach. Confiscation and penalty were therefore considered unwarranted on those facts. Case-Laws Central Excise Mon, 24 Oct 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54764