https://www.taxtmi.com/caselaws?id=105757 Clandestine manufacture and removal cannot be established solely through uncorroborated private diaries, loose sheets, and a third-party statement that is inconsistent, retracted on grounds of coercion, or not tested by cross-examination. Independent evidence, such as reliable buyer records, seizure of unaccounted goods, or tangible material linking production to clearance, is required. Captive consumption recorded in statutory records must also be addressed. Penalty under Rule 209A requires a proven connection with goods liable to confiscation and cannot survive where clandestine manufacture and removal are unproved. Consequently, the duty demand and consequential penalties were set aside. en-us Wed, 25 Sep 2002 00:00:00 +0530 Wed, 07 Mar 2012 14:42:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=105757 Clandestine manufacture and removal cannot be established solely through uncorroborated private diaries, loose sheets, and a third-party statement that is inconsistent, retracted on grounds of coercion, or not tested by cross-examination. Independent evidence, such as reliable buyer records, seizure of unaccounted goods, or tangible material linking production to clearance, is required. Captive consumption recorded in statutory records must also be addressed. Penalty under Rule 209A requires a proven connection with goods liable to confiscation and cannot survive where clandestine manufacture and removal are unproved. Consequently, the duty demand and consequential penalties were set aside. Case-Laws Central Excise Wed, 25 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=105757