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2015 (4) TMI 202 - CESTAT NEW DELHIWaiver of pre deposit - Clandestine manufacture and clearance of final products - Goods not recorded in RG-1 register - Invoices for goods not issued - Held that:- corroboration tried to be achieved by the Adjudicating Authority from the other records i.e. daily production report, dispatch register, packing slips, all the delivery orders, working sheets etc. maintained by the appellant is not appropriate in as much as we prima facie find that the manufacturing process, as detailed by the appellant in their written submissions filed before us, lead us to conclude that the final product of the appellant being a very fragile and sensitive, results in lot of wastage, for which the appellants have also maintained proper records. The wastage arises at various stages ignoring the set of final cutting of the glass into proper shape and sizes resulting in emergence of cullets i.e. the resultant waste. The said cullets are never cleared by the appellant and are reused in the furnace for the manufacture of their final product, for which proper records are again maintained. Revenue's allegation of clandestine manufacture and clearance are based upon mainly the installed capacity as disclosed by one of the deponent employee, readwith the entries made in various records, resulting in theoretical calculations of production. There is virtually no evidence of procurement of excess raw material, conversion of the same into final product, clearance of the same through transporters and identification of the buyers and the consequent flow of money from the buyers to the appellants. It is well established, by catina of judgment that the allegations of clandestine removal cannot be upheld on the basis of surmises and conjunctures and are required to be established by production of positive and tangible evidence. In the present case, we do not even find, prima facie, preponderance of probabilities to conclude the allegations of clandestine removal against the assessee. - Stay granted.
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