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2018 (1) TMI 101 - AT - Central ExciseClandestine production and removal - Sugar - 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 letter dated 27/11/2012 and dated 01/05/2013. There is no dispute that the quantity of Molasses stored in the tank had been determined by dip reading. Determining the quantity of Molasses by dip reading is not a foolproof method as the volume of Molasses may undergo change due to variation of temperature. As such, on the basis of excess Molasses reported during stock taking, it cannot be alleged that there was excess production of Sugar. It is well settled principles of law that shortage of raw material, by itself cannot lead to the inevitable conclusion of clandestine clearances of the final product. Appeal dismissed - decided against Revenue.
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