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2011 (4) TMI 426 - CESTAT, AHMEDABADDemand - Clandestine production and removal - Circular No.854/12/2007-CX, dt.7.9.07 - Rule 31 of Central Excise Rules, 2002 - Show Cause Notice dt.3.10.08 was issued to the appellant raising demand of duty of Rs.7,89,58,670 along with confirmation of interest and imposition of penalty - in the absence of such evidence or the proof reflecting upon the clearance of the final product and in the absence of any identity of the buyer, mode of transport or receipt of consideration etc, the Revenue has miserably failed in establishing its case - Our attention was drawn to the correspondence exchanged between the appellant and their jurisdictional authority, in the month of December, 2007, wherein it was mentioned that there was difference in day to day production as they generally take production as per market demand and all machines do not run all the time of the day - Held that: apart from the input-output ratio, which has been made the basis, there is no other evidences on record to show that the appellant either did not receive the raw materials, on which they have taken the credit or after receiving the same and availing the credit, the same stand removed by them in the open market - If there was no willful suppression, the clandestine activities which are nothing but malafide activities on the part of the assessee, cannot be upheld - Appeal is allowed
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