2002 (9) TMI 210

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....T)]. - The appellants are manufacturers of man-made fabrics (MMF). On 28-2-98, the officers on verification at the premises of the manufacture; it was found that1980 Mtrs. of sarees in finished goods which were not accounted and a shortage of 2378.10 Mtrs. of gray fabric and issued a notice. Assistant Commissioner passed an order demanding duty amounting to Rs. 6,658/- (BED Rs. 3,395/- and AED Rs.....

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....Central Excise Officers who inspected the unit the plea of the excess stock of sarees found unaccounted to be the production of that day, was taken and satisfaction over the method of stock taking was exhibited. He also found that as regards shortage of gray fabrics, the appellants could not satisfactorily explain shortage and therefore the presumption inevitable was that the appellants manufactur....

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....cannot confirm the penalty under Section 11AC of Rs. 6,658/- as arrived at by the Lower Authority. (c)   Since the goods i.e. 1980 metres of 'MMF' sarees were found within the factory premises and there is force in the plea that it could be the production of that day, it's non-accountal in RG 1 could be considered to be satisfactorily explained. In the case before us, we find that the....