https://www.taxtmi.com/caselaws?id=361815 Clandestine manufacture and removal cannot be sustained solely on alleged excess procurement and use of catechu without corroborative evidence. The appellant's explanations concerning reconciliation, short supplies, incorrect postings and processing loss required proper consideration. Evidence was also absent of procurement of other necessary raw materials, dispatches, transport, sale proceeds, or receipt of finished goods by buyers. Rule 173E of the Central Excise Rules, 1944 required identification of a notified principal raw material for determining normal production, and catechu had not been shown to be so notified for the relevant products. The duty demand and consequential penalties were therefore unsustainable, and the appeal was allowed. en-us Wed, 13 Jun 2018 00:00:00 +0530 Tue, 17 Jul 2018 17:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=361815 Clandestine manufacture and removal cannot be sustained solely on alleged excess procurement and use of catechu without corroborative evidence. The appellant's explanations concerning reconciliation, short supplies, incorrect postings and processing loss required proper consideration. Evidence was also absent of procurement of other necessary raw materials, dispatches, transport, sale proceeds, or receipt of finished goods by buyers. Rule 173E of the Central Excise Rules, 1944 required identification of a notified principal raw material for determining normal production, and catechu had not been shown to be so notified for the relevant products. The duty demand and consequential penalties were therefore unsustainable, and the appeal was allowed. Case-Laws Central Excise Wed, 13 Jun 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=361815