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2011 (2) TMI 1211 - CESTAT, BANGALORE
Clandestine production and removal of finished goods - Calculation of production on the basis of power consumption - held that:- It is settled principle of law that adverse conclusion cannot be arrived at against an assessee based on presumption. It is the onus of the department to prove clandestine manufacture and removal of goods from the factory. In the entire period of dispute, spanning seven years, the department has not been able to lay hands on records or documents showing or suggesting clandestine production and clearance of the finished goods by the assessee in such a large scale as to warrant demands totaling about Rs. 10 crores. In the absence of evidence, we cannot sustain a finding of excess production and clearance involving the duty confirmed against the assessee. - As we have held that this norm is not an overriding benchmark which is reliable, the demands of duty confirmed in the orders impugned are set aside. Consequently, the demands of interest as well as penalties imposed are also set aside.