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TMI Blog2002 (12) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... ,10,973/- and penalty of equal amount under Section 11AC confirmed by the adjudicating authority on account of alleged clandestine removal of the goods, against the respondents herein. The respondents factory premises were visited by the officers of the Central Excise on 6-12-96 who carried out stock taking of the goods. As a result of stock taking, shortage of 1142.33 Sqm. in respect of irregular marble and excess of 7247.02 Sqm. irregular slabs were found. The excess stock was seized. On scrutiny of their records, it was also revealed that during the period January, 1993 to December, 1996, 320148.29 Sqm. of irregular marble slabs were issued for captive consumption, out of which 203240.27 Sqm. of marble tiles were manufactured. The respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also ordered the confiscation of the goods with option to redeem the same on payment of Rs. 5,000/- and further imposed penalty equal to the duty amount and also imposed penalty of Rs. 50,000/- on Ashok Bansal, Director of the respondents company. On appeal, the Commissioner (Appeals) set aside the duty demand based on the alleged clandestine removal of the goods along with penalty of equal amount as well as penalty on the Director. He, however, upheld the confiscation and penalty under Rule 173Q against the respondents on account of the shortages of the goods found at the time of the physical verification. 3. The present appeal has been filed by the Revenue questioning the validity of the impugned order of the Commissioner (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be disputed that marble is a natural stone and has inbuilt cracks, defects, one cannot deny that sometimes even the entire slabs or blocks may results into pieces during sawing without having any production of crazy or tiles. Marble tiles may even sometimes break during handling also and this fact also, cannot be denied. We find that the duty demand has been based on the cumulative figures of the disputed period January, 93 to December, 96 and not yearwise or monthwise. It had been founded on the simple arithmetic of difference noticed in slabs issued and tiles and crazy produced therefrom. The difference has been taken from the cumulative figures recorded in the RG-I of the respondents. The work-sheet of calculation of demand, which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR has not been able to refer, to any substantive documentary evidence to substantiate the charge of clandestine removal of the goods, against the respondents. No goods of the respondents were even intercepted in transit being transported without documents and no statement of any buyer had been recorded to whom the respondents must have sold the goods, if removed clandestinely. 7. True, that the shortage of 1142.33 Sqm. of slabs had not been disputed by the respondents but in respect thereof duty amount of Rs. 14,10,973/- had already been confirmed against them by the Commissioner (Appeals). This circumstance itself also could not help the department in establishing the allegation of clandestine removal of the goods for want of corroborat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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