2019 (6) TMI 500

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..... vidence of the nature of purchase of raw materials, use of electricity, sale of final products and mode of flow back of funds etc. Demands cannot be confirmed solely on the basis of presumption and assumption. Clandestine removal is the serious charge against the manufacturer which is required to be discharged by the Revenue by production of sufficient and tangible evidence - In the instant case, the consumption of the electricity was examined by the Department who adopted the shortcut method by raising the demand and levied the penalties. The statement of buyers and transporters are based on memory alone and their statements were not supported by any documentary evidence or any proof. When there was no extra consumption of electricity, .....

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..... the issues as raised by the appellants in the reply to the Show Cause Notice. He referred to one private Register which has been recovered and seized by the Department and alleged to be belonging to the appellant which contains certain entries. The Ld. Consultant further submits that the appellants have got only one furnace in their factory. In case Revenue takes the said register to be of the appellants, since the production has been shown in such detail, there is no scope of any other production has been shown in such detail, there is no scope of any other production. In that case, the production for the period from 27.4.2007 to 27.6.2007 comes to 2683.950 M.T. (source Annexure C2 of Show Cause Notice 19802 x 75 Kgs. + 11988 x 100 Kgs.). .....

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..... presumption and assumption. Clandestine removal is the serious charge against the manufacturer which is required to be discharged by the Revenue by production of sufficient and tangible evidence. In the instant case, the consumption of the electricity was examined by the Department who adopted the shortcut method by raising the demand and levied the penalties. The statement of buyers and transporters are based on memory alone and their statements were not supported by any documentary evidence or any proof. 7. It is our considered view that when there was no extra consumption of electricity, purchase of raw materials etc. then manufacturing of extra goods is not possible. No purchase of raw materials outside the paper books h .....

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