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TMI Blog2016 (7) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... ma, AR for the respondent. ORDER Per B. Ravichandran The appeal is against order dated 9.12.2016 of Commissioner (Appeals), Raipur. The appellants are engaged in the manufacture of H.B. wires and Binding Wires liable to central excise duty. They were also availing cenvat credit on various inputs and capital goods in terms of Cenvat Credit Rules, 2004. In March, 2014, the officers of Central Excise conducted stock verification of raw materials and finished goods in the premises of the appellant. Upon such verification, the officers arrived at a shortage of 79.573 MTs of H.B. Wires (raw materials), 23.069 MTs of H.B. Wires (finished goods) short. Proceedings were initiated against the appellant for recovery of duty of ₹ 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng all the records and there is no irregularity in the accounts maintained by them. While checking the stock of the finished goods and raw materials, the officers did not verify the availability of goods in process (semi-finished goods); (d) There is no evidence adduced by the department regarding alleged unaccounted clearance of excisable goods by the appellant. The whole demand is based on the alleged shortage of raw materials based on the rough estimation. In absence of any evidence of illicit manufacture, unaccounted clearance, transport, etc., no duty demand can be sustained. (e) Reliance was placed on various decided cases to reiterate that mere shortage of raw materials alone cannot sustain the charge of clandestine remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclusion of the statement, he admitted that his response from questions 1 to 8 is correct. The shortage and the procedure to arrive at the stock weight was specifically mentioned in question no.9, which it appears has not been admitted specifically by the Director. In Anand Founders Engineers - 2016 (331) ELT 340 (P H), the Hon ble Punjab Haryana High Court held that mere shortage of finished goods in stock taking is not enough to hold the charge of clandestine removal. In Chandrapur Enterprises Ltd. - 2014 (310) ELT 904 (Tribunal-Delhi), the Tribunal held that when the quantity of finished goods was determined on estimation basis only, the same cannot be treated as real shortage for alleging clandestine removal. In R.S. Industries - 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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