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2017 (12) TMI 666 - AT - Central ExciseClandestine manufacture and removal - shortage of raw material and finished goods - evidence on record to corroborate the allegation of clandestine removal of the goods - Held that: - It is a fact on record that the raw materials found during the course of investigation to manufacture final products other raw material required for manufacturing the, the Revenue has not produced any evidence from where other raw materials were procured or found shortage. It is essential to allege that clandestine manufacture and removal of the goods. No evidence has been produced on record how the goods were manufactured, from where the other raw materials procured, to whom the goods sold, how the goods transported and no tangible evidence has been produced to confirm that the same has been cleared without payment of duty. Therefore the whole of the demand is based on assumption an presumptions. As there is no allegation of shortage of other raw materials which were required to manufacture the said clandestine manufacture of the goods and there is no allegation how the said other raw materials were procured, therefore, the charge of clandestine manufacture and removal of the goods is not sustainable. The department has considered that there is wastage of 22% to 25% in the manufacture of final products relying on the Standard Input Output Norms that the appellant has clandestinely manufactured goods. In respect of the said allegation, Shri Vikas Aggarwal during the cross examination has stated that the number of shifts was recorded in the hot press production sheets which were not relied on by the department. Therefore, the statement cannot be relied in-toto. Although the appellant is manufacturing three final products the demand has been made on average basis which is not sustainable in the eyes of the law. In the absence of any corroborative evidence produced by the Revenue on record merely on the basis of shortage of raw materials during the course of investigation, which has been contested by the appellant that there is no shortage of raw material and finished goods and without adducing any evidence on record for clandestine manufacture and removal of the goods, the demand confirmed on assumption and presumpiton is not sustainable against the appellants - appeal allowed - decided in favor of appellants.
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