Proof of manufacture and clandestine clearance was not established, so the duty demand could not be sustained.

Revenue must prove manufacture and clandestine clearance with evidence before sustaining a duty demand. Where the record showed no material to establish that television and music system goods were manufactured from imported parts and components within the respondents' premises, and the appeal likewise produced no supporting proof, the demand remained unsupported. The duty demand could not be sustained because the alleged manufacture and clearance were not proved.

---

---

Issues: Whether the Revenue had established manufacture and clearance of television and music system goods so as to sustain the demand of duty.

Analysis: The impugned order recorded a finding that there was no evidence to show that the respondents manufactured the goods from the imported parts and components. In the appeal, the Revenue also failed to produce any material to prove manufacture within the respondents' premises. The demand was therefore unsupported by evidence.

Conclusion: The Revenue failed to prove manufacture and clandestine clearance, and the demand of duty could not be sustained.

---