Manufacturer Wins Excise Duty Challenge: Stock Shortage Deemed Normal, Allegations of Clandestine Removal Dismissed

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....CESTAT held that allegations of clandestine removal were unsubstantiated. The demand of Central Excise duty of Rs. 6,60,030/- and Rs. 2,07,803/- was set aside due to lack of corroborative evidence. Stock shortage was attributed to normal accounting variations in steel manufacturing, not illicit removal. No tangible proof existed to support claims of unaccounted production or sales. Consequently, associated interest, penalties, and personal penalty against the Managing Director were also nullified. The appellate tribunal comprehensively rejected the revenue's claims, finding no merit in the original order and allowing the appeal in its entirety.....