Court Partially Allows Appeal: CENVAT Credit Disallowed, Penalty u/r 26 Set Aside Due to Insufficient Evidence.

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Full Text of the Document

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....Clandestine removal of goods denied CENVAT credit. Liability for duty, interest, and penalty from FY 2007-08 to 2011-12 assessed. Differential duty demand of Rs. 40,70,142/-. Deductions for discounts, octroi, and cess paid allowed, reducing net duty payable to Rs. 3,81,322/-. Duty demand of Rs. 43,19,238/- for clearance of imported showers held unsustainable as processes carried out amounted to manufacture. Cenvat credit demand of Rs. 27,61,517/- on imported parts disallowed. Duty demand of Rs. 3,12,373/- on alleged clandestine clearance set aside due to lack of evidence. Penalty u/r 26 set aside. Differential duty of Rs. 3,81,322/- with interest and penalty upheld. Remaining demands set aside. Appeals partially allowed.....