Manufacturer Cleared of Clandestine Production Allegations Due to Insufficient Evidence in Landmark Excise Duty Case

CESTAT adjudicated a case involving alleged clandestine manufacture and removal of goods. The tribunal found insufficient evidentiary support for the revenue's claims, specifically noting lack of substantive proof regarding raw material procurement, labor employment, electricity consumption, production capacity, and sales transactions. Referencing precedent cases, the tribunal determined that mere private records and investigative statements do not constitute conclusive evidence of clandestine production. Consequently, the excise duty demand was deemed unsustainable, and consequently, associated penalties were dropped. The appellate tribunal set aside the original orders and allowed the appeal, effectively exonerating the appellant from the alleged infractions. .....

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