https://www.taxtmi.com/caselaws?id=123540 Mere discrepancy between balance sheet figures and statutory excise records is insufficient to sustain a demand for central excise duty, penalty or interest. Clandestine manufacture and removal must be proved by affirmative, corroborative evidence showing excess receipt of raw material, consumption, production and clearance beyond recorded accounts. Where the assessee produced a chartered accountant's certificate and reconciliation explaining the figures, and the Department did not rebut that material, suspicion could not replace proof. On that basis, the demand, penalty and interest were not sustainable. en-us Wed, 02 Apr 2008 00:00:00 +0530 Fri, 08 Sep 2017 09:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=123540 Mere discrepancy between balance sheet figures and statutory excise records is insufficient to sustain a demand for central excise duty, penalty or interest. Clandestine manufacture and removal must be proved by affirmative, corroborative evidence showing excess receipt of raw material, consumption, production and clearance beyond recorded accounts. Where the assessee produced a chartered accountant's certificate and reconciliation explaining the figures, and the Department did not rebut that material, suspicion could not replace proof. On that basis, the demand, penalty and interest were not sustainable. Case-Laws Central Excise Wed, 02 Apr 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=123540