Excise Duty Case Dismissed: Lack of Evidence Invalidates Rs. 3 Crore Demand on Stock Shortage Allegations

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....CESTAT adjudicated a central excise duty dispute involving alleged clandestine removal of goods without valid invoices. The tribunal invalidated the demand of Rs. 3,04,24,623/- and Rs. 1,76,650/- due to procedural non-compliance under section 9D of the Central Excise Act. Key deficiencies included: unexamined witness statements, unverified loose papers, and absence of corroborative evidence for stock shortage allegations. The tribunal emphasized that mere detection of stock shortages cannot automatically establish clandestine removal, necessitating comprehensive investigation considering multiple evidentiary factors. Consequently, the entire demand with accompanying interest and penalty was set aside, effectively allowing the appellant's appeal.....