Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
CESTAT set aside multiple duty demands totaling over Rs. 2.3 crores against appellant manufacturer of LABSA. Primary allegations of clandestine manufacture and removal based on theoretical input-output ratios (1:1.475 vs 1:1.45) were rejected due to lack of chemical examination. Demands based on batch charges, computer printouts, and diary entries were dropped for insufficient evidence and non-compliance with Section 36B requirements. Claims regarding spent acid clearance and CENVAT credit denial were invalidated. Only the matter of Rs. 3,27,046/- regarding consignment agent sales was remanded for verification. Associated penalties on appellant and co-appellants were set aside, as demands were primarily based on assumptions without corroborative evidence of unauthorized raw material procurement.
CESTAT set aside multiple duty demands totaling over Rs. 2.3 crores against appellant manufacturer of LABSA. Primary allegations of clandestine manufacture and removal based on theoretical input-output ratios (1:1.475 vs 1:1.45) were rejected due to lack of chemical examination. Demands based on batch charges, computer printouts, and diary entries were dropped for insufficient evidence and non-compliance with Section 36B requirements. Claims regarding spent acid clearance and CENVAT credit denial were invalidated. Only the matter of Rs. 3,27,046/- regarding consignment agent sales was remanded for verification. Associated penalties on appellant and co-appellants were set aside, as demands were primarily based on assumptions without corroborative evidence of unauthorized raw material procurement.
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