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2017 (2) TMI 1040 - MADHYA PRADESH HIGH COURTClandestine Removal - Tobacco - clearance of 39,44,21.52 Kilograms of Gutkha or 1,97,21,05,260 number of pouches of 2 Grams each - Whether, in the facts and circumstance of the case, in the absence of any tangible of evidence about manufacture and and removal of the goods the department could draw the inference about clandestine manufactured and removal merely on the basis of presumptions and assumptions? - Held that: - there is cogent, clear and clinching evidence for clandestine manufacture of tobacco product - the Tribunal based upon the evidence has rightly passed the impugned order and in respect of substantial question of law, the answer is that there was sufficient evidence about the manufacture and removal of goods and the Department has rightly drawn inference about clandestine manufacture and removal. Whether, in the facts and circumstances of the case, the Tribunal is justified in coming to the conclusion that the appellants have clandestinely manufactured Gutkha and cleared the same without payment of excise duty merely on the basis of LRs when there is no proof of actual delivery of the raw materials said to have been transported under the LRs. to the appellant and the persons said to have accompanied the trucks could not be identified? - Held that: - The Tribunal was justified to coming to conclusion that appellant was involved in clandestine manufacture of the goods and clearing of the same without payment of Excise Duty. Whether, the alleged receipt of one of the raw materials viz. scented tobacco by itself was sufficient to hold that there was corresponding manufacture and clandestine clearance of “Gutkha” (pan masala) when there is no evidence of purchase of other major ingredients like supari, katha, lime, menthol and kimam and there is also no evidence regarding manufacture of “Gutkha” as also in respect of clearance and financial transactions the same? - Held that: - The receipt of raw material coupled with other evidence as discussed by this Court and by the Tribunal, the Tribunal was justified in holding that there was corresponding manufacture and clandestine clearance of Gutkha by the appellant. Appeal dismissed - decided against Appellant.
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