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2019 (6) TMI 554 - CESTAT KOLKATAClandestine manufacture and removal - removal of cement under the brand names “ASANSOL CEMENT” and “RANA PREMIUM” - SSI Exemption - no evidence with regard to consumption of raw materials, the transportation of raw materials procurement, transport of finished goods or the details of the buyers - HELD THAT:- No enquiry has been made into the consumption of Electricity which was required for excess production, no enquiry at the buyers end to find out the finished product receipt detail and no investigation was made with the transporters to ascertain the alleged removal of cement. There was also no investigation to observe whether there was inwards transportation of principal raw materials required for the manufacture of cement. No discrepancy was found in the stock of finished goods as well as in the stock of raw materials. Under the Excise Act, the Excise Duty is leviable on manufacture or production of excisable goods, therefore for levying the Excise Duty, it is necessary to establish that the excisable goods were produced/manufactured by the assessee concern and for asking Section 11A, it is necessary to establish that the excisable goods are removed clandestinely without payment of duty which the Revenue in the case has failed to establish. The Excise Duty cannot be levied merely on the basis of assumptions or presumptions. When there is no extra consumption of electricity, purchase of raw materials and transportation payment, then manufacturing of extra goods is not possible. No purchase of raw materials outside the books has been found - the impugned order has failed to establish the clandestine removal of the finished product - appeal allowed - decided in favor of appellant.
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