UNION OF INDIA Vs. TIWARI PROCESSORS LTD

JUDGEMENT

(1.) Heard learned Counsel for the appellant.

(2.) This appeal is directed against the order dated 16-6-2005 of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi by which the penalty levied against the respondent-assessee under Section 173Q of the Central Excise Rules, 1944 has been set aside.

(3.) According to the case of Revenue when the premises of the assessee were visited on 10th Sept., 1994 and on 12th September, 1994 a number of lumps measuring 16,452.70 meters of finished fabric was found in excess, than what was recorded in the stock register. Penalty under Section 173Q levied considering that excess stock could not be explained satisfactorily by the respondent. The principal material about excess stock found at the premises of assessee on the aforesaid two visits was primarily consisted of the statement of one Shri Amrit Kumar Nirmal, Accountant an employee of the respondent-assessee. Otherwise as on the date when the factory premises were visited by the authorities i.e. on 10th Sept., 1994 and 12th Sept., 1994, no statement of any person present at the premises was recorded. The statement of Amrit Lal Nirmal was recorded on 17th Sept., 1994 i.e. after 5 days of the visit.