https://www.taxtmi.com/caselaws?id=777570 Central excise duty demand for alleged clandestine manufacture and removal failed because the Revenue relied on seized challan books, packing slips, an assumed input-output ratio, and an uncorroborated statement, without independent proof of excess raw material procurement, electricity consumption, transport movements, identified buyers, or flow-back of sale proceeds. The later dilution of the director's statement further weakened reliance on that evidence. Clandestine removal must be proved by tangible and corroborative material, not assumptions or theoretical calculations, so the demand was unsustainable. As the charge failed, the extended period of limitation could not be invoked and the consequential penalties and interest were also set aside. en-us Mon, 18 Aug 2025 00:00:00 +0530 Mon, 01 Sep 2025 17:50:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777570 Central excise duty demand for alleged clandestine manufacture and removal failed because the Revenue relied on seized challan books, packing slips, an assumed input-output ratio, and an uncorroborated statement, without independent proof of excess raw material procurement, electricity consumption, transport movements, identified buyers, or flow-back of sale proceeds. The later dilution of the director's statement further weakened reliance on that evidence. Clandestine removal must be proved by tangible and corroborative material, not assumptions or theoretical calculations, so the demand was unsustainable. As the charge failed, the extended period of limitation could not be invoked and the consequential penalties and interest were also set aside. Case-Laws Central Excise Mon, 18 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777570