Demand based on Eye Estimation set aside

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal examined a series of excise duty demands involving alleged shortages of raw materials and finished goods, clandestine removal of manufactured products, wrongful availment of SSI exemption on use of another person’s brand name, irregular availment of CENVAT credit, and maintenance of parallel invoices. 

The Tribunal held that the Revenue had failed to substantiate its allegations through credible and corroborative evidence. 

Finding that stock shortages were determined merely through eye estimation, that allegations of clandestine removal were unsupported by evidence regarding buyers, transporters or procurement of raw materials, and that denial of SSI exemption was founded on insufficient material, the Tribunal set aside the entire order along with consequential interest and penalties.