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2016 (3) TMI 157 - AT - Central ExciseClandestine removal of LPG Cylinder from the factory - Duty demand and imposition of penalty - allegation of clandestine removal of goods has been leveled on the ground that the income tax dues have been promptly paid by the appellant without contesting the liability - Held that:- Central Excise duty demand has been confirmed by the authorities below solely based on the demand confirmed by the Income Tax department. On arriving at such conclusion, the Department has not carried out any independence enquiry to ascertain as to whether the goods were removed clandestinely without payment of Central Excise duty. Documents/ records maintained by the appellant regarding manufacture and clearance of goods have also not been verified. Further, there is no evidence regarding receipt of excess raw material/ input goods required for manufacture of the alleged clandestine removal of goods. No investigation has been taken place at the buyer's end, to verify the particulars regarding receipt of unaccounted for goods, who are the reputed public sector oil companies. Since LPG cylinders are not general merchandise, capable of bought and sold in the common market place and is controlled under the stringent norms prescribed by BIS, I am of the considered opinion that the allegation of clandestine removal without proper verification of books cannot be a defensible ground for confirmation of duty demand and for imposition of penalty. - Decided in favour of assessee
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