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2017 (11) TMI 1177 - AT - Central ExciseClandestine removal - discrepancy in figures between ER-1, ER-4 and ER-6 returns - Held that: - Revenue has not undertaken any investigation to see whether such raw materials have actually been received in the factory, used in the manufactured finished goods and cleared clandestinely - Clandestine clearance is a serious charge and Revenue is required to establish the same on the basis of tangible evidence - demand set aside. The second part of the demand to the tune of ₹ 9,96,385/- has been made for the quarter ending June, 2008 on the basis of allegation that the cost of production in CAS-4 certificates was wrongly worked-out since production figures had been taken wrongly - Held that: - Since the entire goods cleared from the Santoor unit is received by their own Abu Road unit, no malafide intention is manifest in the discrepancies seen in the returns - since clearances have been made from one unit to the other of the same company, the principle of revenue neutrality will come into play which is a settled position of law. Any duty paid in Santoor unit will be available as credit in the Abu Road unit. Appeal allowed - decided in favor of appellant.
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