2017 (12) TMI 825

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..... This appeal has been filed by M/s.Kruger M&E Industries (India) Pvt. Ltd. 2. The appellants were represented by Ms.Namita Joshi, Finance Manager. She argued that for the audit in February 2008, the audit report was made in October 2008. In the said audit report it was stated that during the audit no capital goods were found during the tour of the premises. The audit report observes that the app....

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....udit party has visited. She argued that even they were not aware of any such interaction with the audit party wherein they stated that they have removed the goods to the sister unit. She argued that they have also came to know about the said interaction only when the audit report was received. She argued that the entire credit received was reversed by the appellant on their own by issue of invoice....

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....ital goods was not available in the factory premises. The said allegation is solely based on the observations of the audit party, the same cannot take place of evidence. In these circumstances, the audit party should have either themselves or through other officers get a panchnama made and proper statements should have been recorded. In the absence of these, mere observations of the audit party ca....