https://www.taxtmi.com/caselaws?id=54841 POY produced on bobbins of one kilogram or less was found to have been cut off and treated as waste, not clandestinely cleared as yarn. Contemporaneous correspondence with excise authorities, the classification order treating manufacturing waste as waste, RG-1 and stock verification records, and field officers' references to waste yarn supported the assessee's explanation. As there was no evidence of sale or removal of the goods as yarn, the absence of separate category-wise accounting did not justify an inference of unaccounted clearance. The demand of duty and the penalty were therefore set aside. en-us Fri, 09 Sep 2005 00:00:00 +0530 Fri, 22 Oct 2010 12:50:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54841 POY produced on bobbins of one kilogram or less was found to have been cut off and treated as waste, not clandestinely cleared as yarn. Contemporaneous correspondence with excise authorities, the classification order treating manufacturing waste as waste, RG-1 and stock verification records, and field officers' references to waste yarn supported the assessee's explanation. As there was no evidence of sale or removal of the goods as yarn, the absence of separate category-wise accounting did not justify an inference of unaccounted clearance. The demand of duty and the penalty were therefore set aside. Case-Laws Central Excise Fri, 09 Sep 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54841