Actual production and clearance records defeat excise duty demand when departmental records can verify the figures.

Central excise duty demand could not be sustained where the assessee had produced uncontroverted particulars of actual production, clearances and duty payment for the disputed period. The adjudicating authority recorded no finding that the figures were false or unreliable, and the department could verify the relevant position from its own statutory records and challans. Mere non-production of RT-12 returns or the RG-1 register by the assessee was therefore insufficient to deny determination of duty on the basis of actual production and clearances, and the demand was set aside.

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Issues: Whether the demand of central excise duty could be sustained when the assessee had furnished particulars of actual production and clearances for the relevant period, and whether insistence on RT-12 returns and RG-1 register justified denial of determination of duty on the basis of actual production.

Analysis: The record showed that the assessee had submitted a statement of production, clearances and duty paid for the period in dispute. The adjudicating authority did not record any finding that the figures furnished were false or unreliable. The material on record indicated that duty had been paid on actual production and clearances during the relevant period. The statutory records referred to by the lower authority were said to be available with the department and could have been verified from departmental records and challans, so insistence on their fresh production by the assessee was held to be unjustified.

Conclusion: The demand of central excise duty was not sustainable. The assessee's claim based on actual production and clearances was accepted and the duty demand was set aside.

Ratio Decidendi: Where the assessee's actual production and clearance figures for the disputed period stand uncontroverted on record and the department can verify them from its own statutory records, a duty demand cannot be sustained merely for non-production of RT-12 returns or RG-1 register by the assessee.

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