2009 (10) TMI 702

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....aj, Advocate, for the Respondent. ORDER This is an appeal by the Department against the order of the Commissioner (Appeals) No. 24-CE/07 dated 16-3-2007. 2. Heard both sides. 3. The relevant facts, in brief, are that the respondents are engaged in the manufacture and clearance of metallised polyester film falling under Chapter 39 of Central Excise Tariff Act, 1985. The officers visited....

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....oods fully finished; that the shortage is admitted; that the respondents did not tender any logical explanation for the goods short found. Therefore, such shortage should be treated as a case of clandestine removal and penalty under Section 11AC is justified. In view of the above, the order of the Commissioner (Appeals) in setting aside the penalty is not proper and the said order should be set as....

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.....L.T. 200 (P & H) wherein it has been held that inability to explain the shortage of goods cannot be held to be clandestine removal to invoke the provision of Section 11AC. 6. I have carefully considered the submissions from both sides. At the outset, it is to be noted that the shortage of goods, on the date of visit of the officers, is not in dispute and the duty liability has been discharged ....