2017 (10) TMI 735

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....d goods noticed by the lower authorities at the time of visit to the premises of the appellant. The Preventive Unit paid a visit of the appellant s factory on 06/02/2007 and after taking round of the factory undertook the verification of stock position of Sponge Iron and they noticed that there was a total of 28 MTs of sponge iron lying in the factory. When tallied with the RG1 stock, they found that there was a shortage of 317.625 MTs of sponge iron. A panchanama was drawn showing the details and RG1 register was written upto 06/02/2007. on apprehension that there was a clandestine removal of goods, a show-cause notice was issued demanding the duty on the differential quantum of 317.625 MTs of sponge iron. Appellant contested the show-caus....

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.... also confessed that the same was removed without payment of duty without raising Central Excise invoices. He would submit that the stock statement was never challenged by the assessee-appellant. 6. On careful consideration of the submissions made by both sides and perusal of records, I find that the issue is that whether there was a clandestine removal of 317.625 MTs of sponge iron which was found short during the visit and stock verification in the appellant s factory or otherwise. 7. I perused RG1 records produced by the appellant at page no. 78 & 79. It is seen from the said RG1 records, the said RG1 specifically indicates closing/opening balance of 351.355 MTs. on 06/02/2007, production of 78 MTs on 06/02/2007 and the entire mont....

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....ng authority was correct in recording the following findings while dropping the proceedings initiated: 33. Although shortage admitted by the assessee, mere shortage without corroboration by supporting documents does not lead to the conclusion of clandestine removal. No incriminating documents were seized to prove that the goods were clandestinely removed. No credible evidences are produced in support of clandestine removal. Here in the instant case, no weighment slips are placed on record to prove that the stock is actually weighed. Panchanama, statements are not supplemented by weighment slips for reaching conclusion of shortage of sponge iron. In absence of cogent reasons and credible evidence, the allegation of clandestine remov....