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2015 (2) TMI 1055 - AT - Central ExciseDemand of duty on clearance of excess quantity found on molasses found during the course of investigation - Held that:- The allegation of excess unaccounted production of sugar is based on the alleged excess production of molasses and the quantity stored of molasses in the tanks has been determined by dip reading method. The method of dip reading is not full proof method as the volume of molasses may indicate the varying facts due to temperature. Therefore on the basis of excess molasses reported in their during stock taking it was not alleged that there was excess production of sugar. In the case of Oudh Sugar Mills vs. Union of India reported in [1962 (3) TMI 75 - SUPREME COURT OF INDIA] it was held that allegation of clandestine production and clearance based upon the calculation of raw material fed into 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 was virtually no other evidence to indicate clandestine removal of sugar. Admittedly apart from measurement of molasses by way of dip reading method, no other evidence has been brought on record for clandestine removal of sugar, Therefore, allegation against the appellant is not sustainable - Decided in favour of assessee.
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