2010 (2) TMI 672

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....rwani, SSC, for the Respondent. [Order]. -  The factory of M/s. Flex Industries at Noida (the Assessee) was inspected by the Central Excise Department (the Department) on 19-1-1998. 2. In the inspection, certain quantity of inputs were found short as well as certain finished goods were found in excess of the recorded stock. 3.  The Department issued a notice to the ....

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....uty from the fact that inputs duly recorded in the prescribed records were found short on 19-1-1998 by the Central Excise Officer on physical verification? *       Whether the Hon'ble Tribunal was justified ignoring the fact that there was no intention to evade duty when the only conclusion which could have been drawn under the circumstances as the inputs found sho....

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....oved surreptitiously? 7.   We have heard Shri A.P. Mathur, counsel for the Assessee and Shri S.P. Kesarwani for the Department. 8. It is not disputed that there was shortage in inputs as well as excess of finished goods. So far as shortage of the inputs was concerned, the Assessee by its own volition reversed the input credit excise duty to the tune of Rs. 29,780.22. The remai....

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.... payment duty merely from the fact that goods were found in excess. However in the present case, the Tribunal noted down that it was accompanied by the other factors namely there was a shortage of inputs as well as excess finished goods were not of a day. It was not the case where the registers were not updated merely because of clerical or any other reasonable explanation. It is in view of this, ....