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TMI Blog2018 (1) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Income Tax authorities and to hold that transactions which stand accepted by the Income Tax authorities were not genuine transactions. Virtually no evidence is produced by the Revenue as regards the clandestine manufacture and clearances of appellant s final product. It is well settled law that the allegations of clandestine manufacture and removal are required to be proved by production of sufficient evidence in the shape of production of raw material, the actual manufacture of the goods, transportation of the same or in the shape of identification of the buyers. There is no statement of any persons indicating or admitting that income as reflected by the appellants in balance sheet stands derived from clandestine activities of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consumed electricity in the range of 1395-2059 units for every 1 MT of MS Ingots. This was considered to be in excess of the suggested guideline by IIT Kanpur. It was further concluded that the selling price of the product of the appellant was below its cost and other income shown in the balance-sheet towards receipt by way of share trading and commodity trading were shown fictitiously. After conclusion of verification, SCN was issued and the impugned order was passed in which the assessee was held to have clandestinely cleared the finished products and the income generated from such clandestine clearance was being reflected in their balance-sheet as share trading and commodity trading. Accordingly, duty to the extent of ₹ 2.96 cro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the persons whose statements had been relied upon in the SCN, as also of Dr Batra, was requested, but not permitted. xi) Since no experiment of electricity consumption was conducted by Revenue in the appellant s factory, no inference can be drawn against the appellant insofar as electricity consumption is concerned in production of M.S. Ingots (final product). xii) Taking stock of identical contentions, advanced in the context of identical allegations, this Hon ble Tribunal had, in a self-speaking judgment in R A Castings Pvt Ltd v CCE, 2009 (237) ELT 674 (T) held that no finding of clandestine removal could be returned. The said judgment was successively upheld by the Hon ble Allahabad High Court in CCE v R A Casting Pvt Ltd, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by the assessee for payment of Income Tax. Such Income Tax Returns have also been assessed by the Income Tax Department. The said returns have also been audited by their statutory auditor. We would like to observe that Central Excise authorities have no jurisdiction to interfere in the orders passed by Income Tax authorities and to hold that transactions which stand accepted by the Income Tax authorities were not genuine transactions. The Tribunal in the case of R.A. Casting Pvt Ltd Vs CCE Meerut-I [2009 (237) ELT 674 (Tri.)] has dealt with an identical question. By referring to the Hon ble Gujarat High Court decision in the case of Arabian Express Line Ltd Vs Union of India [1995 ITR 31], it stands held by the Tribunal that law does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note that virtually no evidence is produced by the Revenue as regards the clandestine manufacture and clearances of appellant s final product. It is well settled law that the allegations of clandestine manufacture and removal are required to be proved by production of sufficient evidence in the shape of production of raw material, the actual manufacture of the goods, transportation of the same or in the shape of identification of the buyers. There is no statement of any persons indicating or admitting that income as reflected by the appellants in balance sheet stands derived from clandestine activities of manufacturer and clearance of their final products. 9. Accordingly, the impugned order is set aside. The appeal filed by Revenue is di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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