https://www.taxtmi.com/caselaws?id=451198 CESTAT Kolkata allowed the appeal in a clandestine removal case involving tobacco manufacture. The tribunal found that mere presence of an FFS packing machine in unregistered premises was insufficient to establish clandestine manufacture and clearance of chewing tobacco. Key evidence showed the machine lacked two vital parts (Disc and Suit) rendering it non-operational. The investigation failed to produce corroborating evidence such as raw material purchases, power consumption records, or transporter statements. The tribunal held that Rule 18(2) of CTPM Rules was not applicable and penalty under Section 11AC of Central Excise Act was not imposable. The demand for central excise duty, interest, and penalty was set aside. en-us Thu, 21 Mar 2024 00:00:00 +0530 Fri, 22 Mar 2024 08:35:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451198 CESTAT Kolkata allowed the appeal in a clandestine removal case involving tobacco manufacture. The tribunal found that mere presence of an FFS packing machine in unregistered premises was insufficient to establish clandestine manufacture and clearance of chewing tobacco. Key evidence showed the machine lacked two vital parts (Disc and Suit) rendering it non-operational. The investigation failed to produce corroborating evidence such as raw material purchases, power consumption records, or transporter statements. The tribunal held that Rule 18(2) of CTPM Rules was not applicable and penalty under Section 11AC of Central Excise Act was not imposable. The demand for central excise duty, interest, and penalty was set aside. Case-Laws Central Excise Thu, 21 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451198