Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2014 (4) TMI 376 - CESTAT AHMEDABAD
Clandestine removal of goods - Manufacture of manmade fabrics - Held that:- evidence of only one diary cannot be made the basis of establishing clandestine manufacture and removal of the fabrics. It has been repeatedly held by the courts that clandestine manufacture and clearance cannot be readily inferred from few documents and statements unless the allegations are also corroborated and established on evidences, relatable to or linked with actual manufacturing operations. As far as the present demand is concerned, there is no such evidence forthcoming in the records before us to suggest clandestine manufacture and clearance by the appellants. Mere reliance on note books/ diaries or statements cannot be considered as enough evidence for clandestine manufacture and clearances. Accordingly, duty demand ₹ 30,18,378/- is not sustainable against the appellant Mahesh Silk Mills, and the same is set aside. Consequently, neither any penalty is imposable upon Mahesh Silk Mills nor their land, plant nor machinery are liable to confiscation under Rule 173 Q of the Central Excise Rules, 1944 - Following decision of M/s Arya Fibres Pvt. Ltd., M/s Nova Petrochemicals Ltd. and others Versus CCE Ahmedabad-II [2013 (11) TMI 626 - CESTAT AHMEDABAD] - Decided in favour of assessee.