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2018 (10) TMI 5 - AT - Central ExciseClandestine manufacture and removal - M. S. Ingots - demand for duty raised on the basis of the input output norm declared by the appellant in their ER-5 returns - whether the demand raised thereby on the basis of arithmetical calculation can be sustained? Held that:- The allegation of clandestine clearance has been made by the Revenue authorities, but the same has not been supported by any documentary evidence. The entire demand has been worked out on the basis of presumption, taking into account the formula declared by the appellant - Clandestine clearance needs to be established on the basis of tangible documentary as well as oral evidence. In the present case, no such evidence has been brought on record by the Revenue. The Tribunal in the case of M/S EASTER (INDIA) CHEMICALS LTD. & RAJ TANDON VERSUS COMMISSIONER OF CENTRAL EXCISE, GHAZIABAD [2017 (2) TMI 304 - CESTAT ALLAHABAD] has set aside the demand made only on the basis of input output ratio declared in ER-5 returns. The demand of Central Excise duty is not justified, in the absence of any documentary evidence supporting the charge of clandestine clearance - appeal allowed - decided in favor of appellant.
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