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2020 (9) TMI 897 - AT - Central ExciseClandestine Removal - illicit production of plywood on the basis of consumption of resin - demand based only on presumption only without any corroborative evidences - case of appellant is that while issuing the demand, the consumption of resin has been calculated on average basis and not on the basis of thickness viz. resin consumption which was declared at the time of search proceedings - HELD THAT:- It is observed that no investigation has been undertaken by the Revenue towards procurement of additional raw materials clandestinely. No other corroborative documents have been produced. Investigations against the consignees have also not been done before raising demand on the allegation of clandestine clearance. The onus is definitely on the department to establish manufacture and clearance of such goods and also regarding the receipt of payment - In the absence of such investigation and evidence, the demand of duty cannot be sustained. Penalty - HELD THAT:- Once the demand for duty payable is not sustained, there is no justification to impose penalty on the appellant firm as well as on the partner. Appeal allowed - decided in favor of appellant.
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