https://www.taxtmi.com/caselaws?id=340701 Excise demands and confiscation cannot rest on theoretical stock reconciliation alone where the manufacturing process involves open-yard fabrication, mixed scrap and work-in-progress, and no clear identification of excisable goods is made. On that basis, confiscation of alleged excess work-in-progress, duty demands for alleged shortages, and denial of Cenvat credit were held unsustainable in the absence of corroborative evidence of diversion or clandestine removal. Input services used to construct a labour dormitory or rest facility within factory premises were treated as having sufficient nexus with business activity, so credit was admissible. A demand relating to alleged clearance of M.S. plates, and consequential penalties, also failed for lack of supporting evidence. en-us Fri, 17 Feb 2017 00:00:00 +0530 Fri, 09 Sep 2022 14:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340701 Excise demands and confiscation cannot rest on theoretical stock reconciliation alone where the manufacturing process involves open-yard fabrication, mixed scrap and work-in-progress, and no clear identification of excisable goods is made. On that basis, confiscation of alleged excess work-in-progress, duty demands for alleged shortages, and denial of Cenvat credit were held unsustainable in the absence of corroborative evidence of diversion or clandestine removal. Input services used to construct a labour dormitory or rest facility within factory premises were treated as having sufficient nexus with business activity, so credit was admissible. A demand relating to alleged clearance of M.S. plates, and consequential penalties, also failed for lack of supporting evidence. Case-Laws Central Excise Fri, 17 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340701