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2017 (1) TMI 595 - AT - Central ExciseClandestine removal - shortage of stock of yarn in the factory - Held that: - the lack of authentication of opening stock in the computation of stock of yarn was described as a glaring defect in arriving at the conclusion that grey fabric had been clandestinely removed. Likewise, the input-output ratio of yarn to fabric is also asserted to be an unsubstantiated assumption. Nowhere in the records do I find any evidence to support these assumptions. Further, it was pointed out that there was an absolute absence of motive for clandestine clearance because M/s Golden Silk Mills having registered under CENVAT Credit Rules, 2002 though the manufacture of grey fabric is exempt for excise duty owing to the special measure of the option to manufacturers to pay duty on clearance of grey fabric if CENVAT credit on yarn was intended to be availed, it is contended that it would be foolish of them to contemplate clandestine removal of grey fabric which is liable to duty of 10% when duty on yarn was 24%. Appeal allowed - decided in favor of appellant.
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