Tampered production slips can sustain clandestine clearance duty demand and penalty when they reflect unrecorded actual production.

Production slips found to be tampered with, together with laboratory confirmation and staff statements, were treated as evidence that the recorded figures reflected actual production omitted from Central Excise accounts. On that basis, the unexplained excess production was treated as clandestinely cleared with intent to evade duty, and the duty demand and personal penalty were sustained. The revision application was rejected.

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Issues: Whether the production slips had been tampered with and whether the figures recorded therein related to actual production not entered in the Central Excise records, justifying the demand of duty and penalty.

Analysis: The laboratory reports confirmed tampering of the figures on the production slips. The records were found to relate to production of finished woollen yarn at the packing stage, and the supervisory staff's statements supported the view that the figures reflected actual production on the relevant dates. On that basis, the unexplained excess production was treated as having been cleared without entry in the excise records and with intent to evade duty.

Conclusion: The duty demand and personal penalty were upheld; the revision application was rejected.

Ratio Decidendi: Where production slips are proved to have been tampered with and are shown to record actual production omitted from excise accounts, duty liability for clandestine clearance is sustained.

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