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TMI Blog2015 (1) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... factory. The assessee’s authorised representative, in his statement, has accepted the shortages. However, he is nowhere deposed that the said alleged short found goods were cleared by them clandestinely. Apart from the alleged shortages, there is virtually no evidence on record to corroborate the allegation of clandestine removal. The Tribunal in number of decisions has held that mere shortages cannot lead to inevitable conclusion of clandestine removal. As such, I find no justification for confirmation of duty demand of ₹ 2,26,880/- against the assessee. There were certain excesses also found in the assessee’s factory. Admittedly, the said excess found goods must have been manufactured out of the raw materials entered in the reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise officers on 19-11-2005, who conducted various checks and verifications. As a result, 31,598 pairs of finished goods and 40,905 kgs. of various cenvatable raw materials were found short. They also detected an excess of 43,202 pairs and 3,662 kgs. of various cenvatable raw materials. 3. Statements of various persons were recorded admitting the shortages and the excesses. The excess found goods were seized and were adjudicated by a separate order. 4. The dispute in the present appeals relates to confirmation of demand of duty on the short found finished goods and the raw materials. The original adjudicating authority confirmed the demand of duty of ₹ 2,26,880/- (Rupees two lakh twenty-six thousand eight hundred and eig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e removal. The Tribunal in number of decisions has held that mere shortages cannot lead to inevitable conclusion of clandestine removal. As such, I find no justification for confirmation of duty demand of ₹ 2,26,880/- against the assessee. Accordingly, the appeal filed by the assessee is allowed. 7. As regards the Revenue s appeal, it is seen that there were certain excesses also found in the assessee s factory. Admittedly, the said excess found goods must have been manufactured out of the raw materials entered in the records. There is no evidence that the raw materials for the said excess found goods were procured clandestinely by the assessee. As such, Commissioner (Appeals) has rightly observed that once raw materials entered in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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