https://www.taxtmi.com/caselaws?id=271624 Duty demand, interest and penalties on PTY/PFY were found unsustainable where the Revenue relied mainly on oral statements of suppliers, transporters and employees without corroborative documentary evidence of non-receipt or diversion. The assessee's records showed procurement under CT-3, use of the yarn in terry towel borders, physical stock in the factory, and samples of exported goods. In the absence of reliable proof that the goods were diverted to the local market or not used in manufacture of export goods, the allegation failed. The penalty on the managing director also could not stand once the underlying demand was not established. en-us Tue, 27 Oct 2015 00:00:00 +0530 Mon, 13 Feb 2017 13:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=271624 Duty demand, interest and penalties on PTY/PFY were found unsustainable where the Revenue relied mainly on oral statements of suppliers, transporters and employees without corroborative documentary evidence of non-receipt or diversion. The assessee's records showed procurement under CT-3, use of the yarn in terry towel borders, physical stock in the factory, and samples of exported goods. In the absence of reliable proof that the goods were diverted to the local market or not used in manufacture of export goods, the allegation failed. The penalty on the managing director also could not stand once the underlying demand was not established. Case-Laws Central Excise Tue, 27 Oct 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=271624