2018 (1) TMI 824

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....e premises of the appellant's factory on 11.01.2012. Stock verification was done and record were examined and the officers noticed shortage in various excisable items when compared to the entries in record maintained. Accordingly, alleging unaccounted clearance without payment of duty, proceedings were initiated against the appellant to demand and recover excise duty, not paid on such unaccounted clearances. The original authority held that the appellants are liable to pay excise duty of Rs. 20,01,193/-. The amount which is already paid by the appellant on 12.01.2012 was ordered to be appropriated. A penalty equal to the said amount was imposed in terms of Section 11AC of the Central Excise Act, 1944. On appeal, vide the impugned order, the....

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....opted by the appellant for recording stocks is the method followed by the officers in verifying the stock. The authorized signatory of the appellant was present through-out the stock taking process. No objection was ever raised against the method adopted by the officers. In fact, the authorized signatory has accepted the shortage as recorded on completion of the stock taking, in the presence of two independent witnesses. It is based on the records maintained by the appellant and the actual availability of excisable stock, the demand was raised. When the appellant could not satisfactorily explain such a substantial shortage, they cannot shift the burden to the Revenue to establish with precise evidence the case of clandestine removal. Regard....

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....tantial evidentiary value. Admittedly, Shri Badani is not an ordinary employee of the appellant. Even otherwise, we note that the appellant have never came forward even in the present appeal proceedings to explain as to how such shortage of material can be explained when compared to the records maintained by themselves. This aspect has never been explained satisfactorily. However, they have repeatedly pleaded that a case of clandestine removal has to be established by the Revenue. While we note that case of clandestine removal without payment has to be established with supporting evidence, we note that the goods which are recorded, as produced/in stock, are not available in the approved premises of the appellant. In such situation, necessar....