2005 (12) TMI 198

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Commissioner (Appeals), Mangalore. During the annual stock verification, the company found shortage of inputs to an extent of 0.0021%. The Department proceeded to charge the assessee for clandestine removal and confirmed the duty demand of Rs. 4,30,227/- for the said shortage. The Commissioner (Appeals) noted that the assessee is a manufacturer of Motor vehicles and is dealing with a large numb....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ance of error in a complex system involves maintenance of the large numbers and volume of inputs. 4. On a careful consideration of the matter, I notice that the Commissioner (Appeals) has examined the issue in great detail and found that the shortage was only of a very small percentage of 0.0021. The explanation given by the assessee that the shortage is due to accounting error cannot be ruled ou....