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2017 (7) TMI 1369 - HC - Central ExciseClandestine removal - M.S. Ingots - demand based on presumption and surmises - unrealistic electricity consumption, high cost of production vis-à-vis income from sale, unrealistically low amount of expenditure towards salary of employees and though manufacturing activity incurs losses - HELD THAT:- This Court is remanding the matter to the Commissioner, Central Excise & Service Tax, Ranchi. This Court is not much going into detail of further arbitrariness in the Order-in-Original about the lower remuneration to the employees of the petitioner-unit as well as the manufacturing unit is running in loss and the profit is made from non-core activities etc. There appears to be very high sounding reasons, but, if they are viewed with zoom lens camera, it appears that nothing is proved by the respondents. “Low remuneration” is a relative word and therefore, statement of the employees of the noticee, ought to have been reduced to writing by the respondents-department. If the employees are stating that they are getting more remuneration than what is shown in the books of account by the noticee, then these statements ought to have been reduced in writing and they must be referred in the show cause notice. Copies of the gist of the statements should be given to the noticee and those employees must be kept to have been followed by the respondents department. Instead of doing this exercise, allegation has been levelled that there is low remuneration paid by the noticee, is not sufficient at all. The Order-in-Original is based upon mere presumptions and possibilities, and, nothing has been proved at all by the respondents, especially unaccounted manufacturing of M.S. Ingots and the clandestine removal thereof. The documents which are referred to in the show cause notice and relied upon, should have been supplied to the petitioners. These documents are :- Nucleus Group report. The document has been referred in the show cause notice dated 7-2-2014 (Annexure-1). Imaginary is the basis of the show cause notice and without proof, the Order-in-Original has been passed in the same breath. The matter is remanded for adjudication of the show cause notice dated 7-2-2014 and the matter will be decided afresh - Petition allowed by way of remand.
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