Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1128 - AT - Central ExciseClandestine removal of goods - Penalty u/s 11AC - Held that:- The allegation of excess unaccounted production of sugar is purely based on the alleged excess production of molasses reported by the appellant themselves vide under letter dated 30-6-2009. There is no dispute that the quantity of molasses stored in the tank had been determined by dip reading. In my view, determining the quantity of molasses by dip reading is not a foolproof method as the volume of molasses may undergo change due to temperature during the summer season. As such, on the basis of excess molasses reported during stock taking, it cannot be alleged that there was excess production of sugar. The Supreme Court in the case of Oudh Sugar Mills Ltd. v. Union of India (1962 (3) TMI 75 - SUPREME COURT OF INDIA) has clearly held that allegation of clandestine production and clearance based upon calculations of raw material fed into the process are vitiated by error of law, being based only on inferences involving unwarranted assumptions apart from the fact of excess quantity of molasses, there is virtually no other evidence indicating any clandestine removal of the sugar. - Decided in favour of assessee.
|