Appellate tribunal overturns duty penalty for alleged clandestine activities

The appellate tribunal overturned the duty and penalty imposed on the appellant for alleged clandestine activities related to final product manufacturing and clearance. The tribunal determined that the charges were unfounded as they were based solely on corrected annual returns filed with the District Industries Centre. Relying on precedent, the tribunal concluded that inflated sales declarations alone did not prove clandestine removal of goods. The appeal favored the appellants, leading to the order's reversal.

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The appellate tribunal set aside the order imposing duty and penalty on the appellant for allegedly indulging in clandestine manufacture and clearance of final products. The tribunal found that the charge was solely based on annual returns filed with the District Industries Centre, which were later rectified by the appellants. Citing previous decisions, the tribunal ruled that the mere declaration of inflated sales figures to the department was not sufficient to establish clandestine removal of goods. The appeal was allowed in favor of the appellants.

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