https://www.taxtmi.com/caselaws?id=390929 Central excise duty demand based on alleged clandestine removal cannot be sustained on assumed input-output ratios or theoretical production norms alone. Where the department relies on comparison with other units and a presumed 1:1 consumption pattern, it must still produce positive corroborative evidence such as excess raw material, unaccounted finished goods, buyer or transporter statements, or unaccounted cash. In the absence of such material, clandestine removal remains unproved and the demand is legally unsustainable. The note also reflects the constitutional principle that tax can be levied or collected only by authority of law. en-us Thu, 02 Jan 2020 00:00:00 +0530 Sat, 06 Feb 2021 16:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390929 Central excise duty demand based on alleged clandestine removal cannot be sustained on assumed input-output ratios or theoretical production norms alone. Where the department relies on comparison with other units and a presumed 1:1 consumption pattern, it must still produce positive corroborative evidence such as excess raw material, unaccounted finished goods, buyer or transporter statements, or unaccounted cash. In the absence of such material, clandestine removal remains unproved and the demand is legally unsustainable. The note also reflects the constitutional principle that tax can be levied or collected only by authority of law. Case-Laws Central Excise Thu, 02 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390929