TMI Blog2015 (1) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... taking, it cannot be alleged that there was excess production of sugar. The Supreme Court in the case of Oudh Sugar Mills Ltd. v. Union of India (1962 (3) TMI 75 - SUPREME COURT OF INDIA) has clearly held that allegation of clandestine production and clearance based upon calculations of raw material fed into the process are vitiated by error of law, being based only on inferences involving unwarranted assumptions apart from the fact of excess quantity of molasses, there is virtually no other evidence indicating any clandestine removal of the sugar. - Decided in favour of assessee. - E/1011/2012 - Final Order No. A/52116/2014-SM(BR) - Dated:- 7-5-2014 - Ms. Archana Wadhwa, Member (J) Ms. Sukriti Das, Advocate, for the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed. 3. Heard both the sides. 4. Ms. Sukriti Das, ld. Counsel for the appellant pleaded that the appellant determined the quantity of molasses stored in the tank during dip reading, that during the summer season due to increase in the temperature there was changes in the volume of the molasses, as a result of which, the volume increases, that dip reading was taken in the month of June and on the basis of dip reading, the appellant determined the quantity of molasses stored which was found to be 3592.95 quintals more than the quantity of molasses recorded in the RG-1 Register, that this excess quantity was reported to the department by the appellant, that just on the basis of alleged excess production of molasses, which may not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lasses by dip reading is not a foolproof method as the volume of molasses may undergo change due to temperature during the summer season. As such, on the basis of excess molasses reported during stock taking, it cannot be alleged that there was excess production of sugar. The Supreme Court in the case of Oudh Sugar Mills Ltd. v. Union of India (supra) has clearly held that allegation of clandestine production and clearance based upon calculations of raw material fed into the process are vitiated by error of law, being based only on inferences involving unwarranted assumptions apart from the fact of excess quantity of molasses, there is virtually no other evidence indicating any clandestine removal of the sugar. 7. In view of the foregoin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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