https://www.taxtmi.com/caselaws?id=108095 Duty demand, confiscation and penalties cannot be sustained where the department relies only on invoice comparison and incomplete records without proving removal of grey fabrics to processing houses in breach of excise procedure. No statements were taken from the processing houses, no stock or document verification was made, and no evidence showed dispatch without challans or without the declaration required under Notification No. 305/77 read with Rule 174A. Mere suspicion is insufficient to establish evasion. The material also affirms that duty liability lies on the manufacturer, namely the processing house, and not on traders who merely arrange job-work processing. On these facts, the demand and penal consequences were held unsustainable. en-us Fri, 24 Jul 1992 00:00:00 +0530 Wed, 28 Mar 2012 17:11:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108095 Duty demand, confiscation and penalties cannot be sustained where the department relies only on invoice comparison and incomplete records without proving removal of grey fabrics to processing houses in breach of excise procedure. No statements were taken from the processing houses, no stock or document verification was made, and no evidence showed dispatch without challans or without the declaration required under Notification No. 305/77 read with Rule 174A. Mere suspicion is insufficient to establish evasion. The material also affirms that duty liability lies on the manufacturer, namely the processing house, and not on traders who merely arrange job-work processing. On these facts, the demand and penal consequences were held unsustainable. Case-Laws Central Excise Fri, 24 Jul 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108095