Clandestine removal allegation failed where electricity data and an unreliable expert report could not sustain the demand.

Allegations of suppressed manufacture and clandestine removal of MS ingots, based mainly on electricity consumption data and Dr. Batra's report, were not sustained because the underlying evidence had already been examined in earlier proceedings and the report was found unreliable. In denovo adjudication, the authority accepted that the Department had not pursued the adverse finding on the report, and the Tribunal found no reason to disturb that detailed determination. The demand was therefore rejected and relief was granted to the assessee.

---

---

Issues: Whether the demand for alleged suppressed manufacture and clandestine removal of MS ingots, raised mainly on the basis of electricity consumption and Dr. Batra's report, was sustainable.

Analysis: The proceedings were founded on the same line of evidence that had already been examined in earlier notices concerning the appellant and had been remanded for fresh consideration. In denovo adjudication, the authority found that the allegation could not be sustained because it rested essentially on Dr. Batra's report, which had been treated as unreliable, and the Department had not carried the matter further against that finding. In the present appeal, the Tribunal found no reason to differ from the detailed denovo decision and treated the matter as no longer requiring further interference.

Conclusion: The demand was not sustained and the appeal was allowed in favour of the assessee.

---