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2023 (8) TMI 9 - AT - Central ExciseClandestine manufacture and removal - demand based on consumption of electricity - corroborative evidences or not - HELD THAT:- While the Department is not required to precisely bring the entire details on account of these issues, they are expected to bring in at least some corroborative evidence to support the allegation that the clandestine manufacture has taken place. Mere reliance on the electricity consumption without any corroborative evidence towards excess purchase of raw materials so as to convert the raw materials into finished goods, will not help the Revenue to prove the case. After going through these factual details it emerges that the only base on which the demand has been confirmed, is on account of the electricity consumption without any corroborative evidence whatsoever in any form. In the case of M/S UNION ENTERPRISES & ANOTHER VERSUS UNION OF INDIA & OTHERS [2014 (5) TMI 93 - CALCUTTA HIGH COURT], the Hon’ble Kolkata High Court has considered the Allahabad High Court’s decision in the case of R. A. Casting on similar issue and held that mere excess consumption of electricity without any corroborative evidence relating to the purchase of the raw material, conversion of the raw material into a final products and clearance from the manufacturing unit to the respective buyers are produced does not raise presumption of evading the duty. Since the Department has relied on the Electricity consumption alone without any corroborative evidence whatsoever, the decision of the Hon’ble High Courts are squarely applicable. Appeal allowed.
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