2010 (3) TMI 949

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..... order of the Commissioner (Appeals) No. 78-CE/APPL./KNP/2008, dated 27-2-2008. 2. Heard both sides. 3. The relevant facts are that when the officers visited the factory premises of the respondent-company, they found shortage of stock of raw materials of 17,100 Kgs. of C.R. Coil/Sheets and 2500 Kgs. of H.R. Sheets totally valued at Rs. 6,44,225/-. The Authorised Signatory, Shri Devendra Katiyar .....

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..... s the grounds of appeal. 5. Ld. Advocate for the respondent strongly supports the order of the lower authorities in not imposing penalty. 6. I have carefully considered the submissions from both the sides. It is noticed that it was a case of shortage of raw materials found at the time of visit of the officers. Neither the show cause notice nor the reply to the show cause notice contain details .....

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..... s clandestine removal and to impose penalty under Section 11AC cannot be accepted in the absence of the evidence corroborating such clandestine removal. As the show cause notice do not indicate even the stock of inputs as per the records, it is not possible to ascertain whether the shortage was significant. No evidence about any clandestine removal as such has been relied upon. In view of the abov .....

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