Clandestine removal allegation failed as evidence supported replacement of tread rubber and the Tribunal's relief was upheld.

Duty demand and penalties were deleted in a clandestine removal dispute involving tread rubber and pre-cured tread rubber because the Tribunal accepted the assessee's explanation that the goods had come for replacement and that supporting evidence was produced. The High Court found no reason to disturb that appreciation of facts and evidence, and upheld the Tribunal's order in favour of the assessee. The Revenue's challenge therefore failed.

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Issues: Whether the Tribunal was justified in deleting the duty demand and setting aside the penalties in a case alleging clandestine removal of tread rubber and pre-cured tread rubber without payment of duty.

Analysis: The Tribunal accepted the assessee's explanation that the material had come for replacement and that supporting evidence was produced. It also found that the Revenue's appeal had no merit, and the High Court found no ground to interfere with that appreciation of facts and evidence.

Conclusion: The Tribunal's order in favour of the assessee was upheld and the Revenue's challenge failed.

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