Allegations of clandestine removal require conclusive proof: CESTAT Kolkata

Commissioner of Central Excise & Service Tax Vs Argasen Sponge (P) Ltd (CESTAT Kolkata)

CESTAT Kolkata reviewed the appeal by the Revenue against Agrasen Sponge Pvt Ltd (ASPL) regarding alleged clandestine removal of sponge iron without payment of Central Excise duty. The case hinged on discrepancies in input-output ratios for raw materials and electricity consumption. The Revenue argued that the production ratios deviated significantly from industry norms established by technical consultants. It estimated that ASPL underreported production and clandestinely removed 16,436.71 M

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