Notional scrap estimation cannot sustain duty demand without evidence of clandestine removal; departmental appeals were dismissed.

Departmental appeals challenging the dropping of duty demand and penalties on job workers were rejected because the demand rested on notional scrap-generation assumptions rather than actual evidence of clandestine removal or non-payment of duty. The lower appellate authority had given a reasoned order based on the relevant facts and circumstances, and that order was upheld. The appeals were dismissed.

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Issues: Whether the departmental appeals against the order dropping the duty demand and imposing penalties on the job workers called for interference.

Analysis: The demand was based on notional computation of scrap generation and not on any actual evidence of clandestine removal or non-payment of duty. The lower appellate authority had passed a detailed speaking order after considering the relevant facts and circumstances.

Conclusion: The order of the lower appellate authority was upheld and the departmental appeals were dismissed.

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