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TMI Blog2016 (6) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... arn of different counts liable to central excise duty. Officers of Central Excise, Jaipur conducted physical stock verification in the premises of the appellant on 27.09.2001. Upon finding certain excess as well as less quantities of different types of yarn, further investigations were conducted. Proceedings were initiated against the appellant vide show cause notice dated 15.09.2003. The case was adjudicated by the Original Authority on 10.11.2004. On appeal, the Commissioner (Appeals) remanded the matter back to the Original Authority for re-adjudication. Thereafter, the Original Authority passed order dated 25.04.2006. He confirmed central excise demand of Rs. 12,61,588/- and imposed equal amount of penalty on the appellant. He imposed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... day 28.09.2001 and sent his retraction to Divisional Officer as well as Commissioner. In the absence of any evidence of clandestine removal of materials, identity of person to whom such materials were sold etc., the allegation of clandestine removal cannot be sustained. It was further argued that on 28.09.2001 itself the appellant sought re-verification of physical stock as the stock taking was not done properly the previous day. Loose stock lying in the various places of the unit was not taken into account. 5. Regarding the second part of the duty demand, ld. Counsel submitted that the said demand was solely on the basis of a log book maintained for packing materials. The department has taken the log book register of Packing Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the various entries in the log book maintained in the packing department. 7. Ld. AR further indicated that on de novo proceedings, the Original Authority considered the appellant's claim regarding issue of 1000 kgs. of yarn for doubling and accordingly, reduced the demand. The present impugned order of the Commissioner (Appeals) cannot be faulted. 8. Heard both the sides and examined the appeal records. 9. The point for decision in these appeals is whether or not the appellant evaded central excise duty on yarn by way of unaccounted clearance. As mentioned earlier in the order, the demand covers two issues. The first one is the central excise duty confirmed on account of certain shortage of some varieties of yarn found on physical veri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive much credence to the retraction within a day given by Shri Barud as well as the request of the Company for re-verification of the stock on the very next day. Even in the statement of the Managing Director, there is no indication or corroboration regarding any possible clandestine clearance of excisable goods. 10. The Hon'ble Punjab & Haryana High Court in the case of Commissioner of Central Excise & Service Tax , Ludhiana Vs. Anand Founders & Engineers- 2016 (331) ELT 340 (P&H) held that clandestine removal cannot be established only on the basis of shortage of materials detected at the time of stock taking by the officers. Mere shortage detected cannot ipso facto lead to the allegation and findings of the clandestine removal. In the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the RG-I on a day-to-day basis. Further, the log book maintained in the packing department is apparently due to the requirement of ISO Standards and the quantity mentioned as per older version of the format is for instructions of packers. In any case, if reliance has to be placed on the log book for issue of packing materials, for alleging clandestine removal of excisable goods without entering in the records, corroboration is required to support such allegation. In the present case, there is absolutely no corroboration and the demand is made only on the basis of certain comparison between a non-statutory record maintained for packing materials and the entries in the statutory records, RG-I. I find that no corroboration of any nature has b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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