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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
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PJ/Case Laws/2011-12/1120

Whether clandestine removal can be said to be proved on mere admission of Manager that there is shortage?

Prepared By:
CA. Rajani Thanvi & 
Bharat Rathore

 



Case: Commissioner of C. Ex., Lucknow v/s Roll Tubes Ltd

 

Citation: 2011 (265) ELT 414 (Tri-Del)

 

Issue:- Whether clandestine removal can be said to be proved on mere admission of Manager that there is shortage?

 

Brief Facts:- Respondent-assessee is engaged in the manufacture of Black Steel Pipes and Tubes. During the visit by Central Excise officers, shortage of 51.08 MT of finished goods was noticed. Such shortage was admitted by the Factory manager. And the respondent deposited the duty involved within next 2 days.

Revenue issued show cause notice with proposal to confirm the demand and impose penalty. The Adjudicating Authority dropped the proceedings on the ground that the shortage was on eye-estimation basis and not on verification of stock on actual weighment basis. Also there was no corroborative evidence on record.

Against this decision, Revenue is in appeal before the Tribunal.

Appellant’s Contentions:- Revenue contended that the statement of the manager supports their case.

Reasoning of Judgment:- The Tribunal is of the view that there is no reference to any evidence corroborating the statement of clandestine removal. The statement of the Manager only admits shortages but there is no admission on his part that the shortage was due to clandestine removal. Thus, the Lower Authorities have rightly held that such shortage may lead to suspicion but in the absence of any positive and tangible evidence with regard to clandestine removal, the allegations cannot be upheld. It was also seen that no mode of Weighment was indicated in the panchnama. There was no inventory on record and no details as to how such a huge quantum was verified by the officers. Impugned orders of the Lower Authorities upheld.

Decision: - Appeal rejected.

 

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