TMI Blog2018 (6) TMI 1597X X X X Extracts X X X X X X X X Extracts X X X X ..... asons i.e. 2002 03 (covering April 2003 and May 2003) and 2003 04 (covering December 2003 to March 2004). Hence, the findings of the Learned Commissioner are flawed in so far as he held that the production of Sugar/Molasses took place only during October to March, which was common to both the reporting periods. The burden of establishing clandestine removal is on the revenue and in the instant case the revenue has failed to adduce any positive evidence in support of the charge as entire demand is based on a theoretical calculation and inference drawn out of an incorrect application of the yield ratio -The Fact that Sugar and Molasses are controlled products and the production/clearance is strictly regulated also cannot be lost sight ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gating ₹ 96,96,194/ along with equivalent penalty and interest-. The alleged clandestinely manufactured and cleared quantity was worked out by applying the yield/recovery of Molasses and Sugar as reflected in the final manufacturing report prepared by the Appellant for the Sugar Season 2002 03 and 2003 04 to the cane crushed during the financial years 2002 03 and 2003 04 as per the Annual Reports of the Appellant and the same was compared with the production reported during these financial years as under: Yield/Recovery as per Final Manufacturing Report Cane Crushed Qty Expected Production Qty Reported Production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Sugar, Molasses and Sugar cane are controlled commodities and the production as well as clearance thereof are regulated by the Central and State Governments in terms of the following acts and rules: Sl. No. Commodity Acts/Rules Legislature 1. Sugar Essential Commodities Act, 1956 read with Sugar (Control) Order, 1966. Central Government 2. Molasses Bihar Molasses (Control) Act, 1947 read with rules framed thereunder State Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure and/or removal is upon the revenue and revenue has not adduced any evidence whatsoever to support the charge as the entire demand is based on a theoretical calculation and inference drawn out of an incorrect application of the yield ratio for one Sugar season to the financial year. Therefore, the entire demand is based on conjecture and surmise without any positive evidence in support thereof. The ld. Consultant further argued that the adjudicating authority has grossly erred in observing that sugar was produced only during October to March, which period is common in both the reporting periods (i.e. Financial year and Sugar year). The fact being that Sugar and molasses were also produced during the period, April 2003 and Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affirmed in SC iv) Mittal Pigments 2018 (360) ELT 157 (Tri- Delhi;Para 6) v) Shrigonda Sahakari Karkhana ltd 2011 (269) ELT425 (Para 6) 3. Learned DR supported the impugned Order-in-Original. The Learned DR averred that since both the Sugar seasons as well as the financial year comprised a period of twelve months, there should not have been any difference in the yield ratio. 4. Heard both sides and perused the appeal records. 5. We find that the Learned Commissioner has confirmed the charge of clandestine production and clearance of Sugar and Molasses solely by applying the yield ratio for the Sugar seasons 2002 03 and 2003 04 to the cane crushed during the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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