2009 (12) TMI 757

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..... seeks waiver of pre-deposit and stay of recovery in respect of duty of Rs. 6.4 lakhs and equal amount of penalty. The application filed by a partner of the firm seeks similar relief in respect of the penalty of Rs. 60,000/- imposed on him. In adjudication of a show-cause notice, the original authority demanded the above amount of duty for the period 1-4-2002 to 12-10-2002 in respect of goods which .....

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..... e and no other income. However, the answer to the next question, which was crucial, was in the negative. The question was this: Do you agree that cash income by a manufacturing company may be generated either by sale of inputs or capital goods or by sale of manufactured goods without recording in statutory records and cleared without Bill/invoice? The answer was No . Yet another relevant questi .....

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..... e in support of their finding that the assessee had clandestinely manufactured excisable goods and cleared the same likewise without payment of duty during the period of dispute. A demand of duty cannot be raised without evidence of manufacture and clearance of excisable goods. This sort of evidence is not forthcoming from the records. Prima facie, therefore, the appellants have made out a good ca .....

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