CESTAT allowed the appeal against allegations of clandestine ...

Sponge Iron Production Case: Revenue's Theoretical Input-Output Ratio Claims Rejected Due to Lack of Evidence

February 13, 2025

Case Laws Central Excise AT

CESTAT allowed the appeal against allegations of clandestine production and removal of sponge iron. Revenue's case relied solely on theoretical input-output ratios without corroborative evidence or independent plant study. Appellant's declared ratio (1:1.92 in 2008-09 to 1:1.87 in 2009-10) was not effectively rebutted. Revenue failed to establish clandestine removal of 11,542 MT through vehicle movements, buyer statements, or cash transaction records. The demand of Rs.1,42,845 was set aside as revenue-neutral since both units shared common balance sheet with eligible CENVAT credit. Extended period demand was time-barred absent evidence of suppression. Consequently, penalties on Managing Director were vacated.

View Source

← Previous Next →

CESTAT allowed the appeal against allegations of clandestine ...

Sponge Iron Production Case: Revenue's Theoretical Input-Output Ratio Claims Rejected Due to Lack of Evidence

February 13, 2025

Case Laws Central Excise AT

You may also like:

Clandestine Removal - melting scrap - excess input output ratio - shortage of finished goods - The said input-output ratio cannot remain fixed due to variable factors...

Claim of rebate/ refund - input stage rebate - export of goods - the correctness of the ratio of the input output ratio shall be verified before the commencement of the...

Clandestine removal - The allegation has been raised on the basis of hypothetical and illogical input-output ratio of iron ore to pig iron

The High Court held that the petitioner's failure to file the declaration and Form ARE-2 should not result in rejection of the rebate claim, as the buses were...

Clandestine Removal of goods - Revenue cannot build its case based upon the theoretical percentage calculation of waste generated, without production of any evidence to...

The High Court held that u/s 54 of the Goods and Services Tax Act, 2017, when the input tax credit paid is higher than the output tax, the dealer is entitled to seek a...

Cenvat Credit - Clandestine removal - excess use of inputs - there are no justifiable reasons to deny the credit to the appellant merely on the basis of the input output ratio

Reversal of Input Tax Credit - inputs consumed in dye intermediates (which is also a finished goods), where such goods have been destroyed in fire - - Since the said...

CENVAT credit - all these insurance policies which have been taken by appellant are connected with the activity of the appellant i.e. manufacturing of Hot Iron and...

Excisability - Dolochar - Dolochar arises as a combination of Iron Ore, Dolomite and unburnt pieces of coal during the process of manufacture of Sponge Iron - No duty...

Input service or not - dredging service - case of Revenue is that the dredging service is not required by the Appellant for providing the output service and...

CENVAT credit - Nexus of credit with manufacturers of hot briquetted iron and sponge iron - there is merit in the contention of the Revenue that the service tax paid on...

100% EOU - burning loss - difference between the permissible burning loss of 7.5% and actual burning loss of 15% - Therefore there is always difference between the input...

Cenvat credit on purchase of raw material - sponge iron being the raw material/inputs purchased from registered dealer - goods received on endorsed invoices - goods were...

CENVAT Credit - inputs issued for production lying in shop floor but not used for the production and the same was destroyed in fire - remission of duty granted - though...

Quick Updates: