M.M.Kumar, J.

1. The Revenue has filed the instant appeal under Section 35G of the Central Excise Act, 1944 (for brevity, #24;the Act#25;), challenging order dated 5-2-2007, passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for brevity, #24;the Tribunal#25;), claiming that a substantial question of law would arise for determination of this Court. The Tribunal has held that the Revenue has failed to produce any evidence of clandestine removal and sale of goods. It has further been found as a fact that the demand of duty on raw material found, short is based on the presumption that the raw material must have been used in manufacturing final products, which was ultimately cleared without payment of duty. The Tribunal has noticed the undisputed fact that demand of duty on raw material is based on the quantification of the production, which is worked out on the basis of input and output ratio and in any case, the assessee-respondent had paid duty on the shortage immediately after the ascertainment.

2. Brief facts of the case are that the assessee-respondent is a company engaged in the manufacture of writing, printing and newsprint paper It was using wa