2007 (3) TMI 649 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of Revenue's appeal by Commissioner (Appeals) regarding shortage of finished fabric and duty payment.

Summary:

Issue 1: Shortage of finished fabric and duty payment
The appellant's factory was visited by Central Excise officers noting a shortage of finished fabric. The Manager admitted the shortage due to clearances made without duty payment, with duty paid under protest. Proceedings were initiated, culminating in an order dropping the demand. The Commissioner (Appeals) observed discrepancies in the investigation, lack of proper verification, and absence of relevant records for comparison. The department alleged clandestine removal based on a statement, while the respondent claimed it was obtained under duress and payment under protest indicated no acceptance of clandestine removal.

Decision:
After reviewing the authorities' reasoning, the Tribunal found no evidence of clandestine removal and doubts about the actual shortages due to discrepancies in stock verification methods. Consequently, the Revenue's appeal was rejected.