TMI Blog2015 (2) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Oudh Sugar Mills vs. Union of India reported in [1962 (3) TMI 75 - SUPREME COURT OF INDIA] it was held that allegation of clandestine production and clearance based upon the calculation of raw material fed into 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 was virtually no other evidence to indicate clandestine removal of sugar. Admittedly apart from measurement of molasses by way of dip reading method, no other evidence has been brought on record for clandestine removal of sugar, Therefore, allegation against the appellant is not sustainable - Decided in favour of assessee. - Excise Appeal No. 374 of 2012 - Ex (SM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and proceedings were initiated. The adjudicating authority dropped the demand against the appellant alleged in the show cause notice. But on appeal before the learned Commissioner (Appeals) by the Revenue, the adjudication order was set aside. Aggrieved from the said order, appellant is before me. 3. Learned Counsel for the appellant submits that in this case, the State Excise officer have measured the molasses by way of dip reading method. During the season the said method itself adopted by the State Excise Officer is not correct and appellant themselves has intimated to the department that they will clear the said molasses on payment of duty. In these circumstances, proceedings against the appellant were not required to be conducted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excess production of sugar. In the case of Oudh Sugar Mills vs. Union of India reported in [ 1978 (2) ELT 172 (SC)] it was held that allegation of clandestine production and clearance based upon the calculation of raw material fed into 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 was virtually no other evidence to indicate clandestine removal of sugar. Admittedly apart from measurement of molasses by way of dip reading method, no other evidence has been brought on record for clandestine removal of sugar, Therefore, allegation against the appellant is not sustainable. Accordingly, in these terms, the impugned order is set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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