Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 190 - AT - Central ExciseClandestine removal - M.S. Ingots - process loss of Ingots - demand based on consumption of electricity - HELD THAT:- No experiment had been conducted in the factory of the appellant for arriving at the consumption norm of electricity in the factory of the appellant, it can only be stated that strong suspicion exist against the appellant concerning clandestine removal on the same but the same could not be substantiated. As has been held in the case of COMMISSIONER OF C. EX., MEERUT-I VERSUS RA CASTINGS PVT. LTD. [2010 (9) TMI 669 - ALLAHABAD HIGH COURT], the entire case appears to have been based on assumption presumption and it is a settled principle of law that suspicion howsoever strong cannot take place of proof - Further as has been held in COMMISSIONER OF C. EX., MEERUT-I VERSUS RA CASTINGS PVT. LTD. [2010 (9) TMI 669 - ALLAHABAD HIGH COURT], tax is on manufacture and it is to be proved beyond doubt that the goods have been actually manufactured, which are subjected to excise duty. Unfortunately, no positive evidence is coming on record to that effect. Unfortunately, no positive evidence is coming on record to that effect. Article 265 of the Constitution of India says that no tax shall be levied or collected except by authority of law. Unless the manufacture of the steel ingots is proved to the hilt by authentic, reliable and credible evidence, duty cannot be demanded on the basis of hypothesis and theoretical calculations, without taking into consideration the ground realities of the functioning of the factories. High consumption of electricity by itself cannot be the ground to infer that the factories were engaged in suppression of production of steel ingots. Appeal allowed - decided in favor of appellant.
|