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2023 (8) TMI 1413 - CESTAT CHANDIGARHClandestine removal - allegation on the basis of a third-party evidence in the form of Dharamkanta slips at the end of the supplier and the statement of Shri Ashok Agarwal, in charge of the supplying firms - HELD THAT:- The appellants have not accepted the contention of the Department and the statement of Shri Agarwal; no opportunity to cross-examine the said Shri Agarwal has been accorded. Moreover, the allegation is sought to be sustained on the basis of alleged suppressed receipts of one of the raw materials i.e. Formaldehyde. No investigation, whatsoever, concerning the use of the primary raw material, i.e. wood logs etc., electricity, labour, etc. has neither been investigated nor established. The aspect of transportation of the raw materials and the final products has not been looked into. As consistently held by the Courts and the Tribunals, allegation of clandestine removal is a serious charge; the same needs to be established the receipt of raw material, manufacture of excisable goods by deploying labour and by using electricity, transport of excisable goods to the buyers and financial transactions thereof. None of the elements have been proved even on a sample basis, leave alone in a mathematical precision. Such a halfbaked investigation cannot form basis of establishing the charge of clandestine removal. A few cases have travelled up to this Bench which has set aside the impugned orders. It is bewildering to see such a sorry state of affairs where identical show-cause notices are issued on the same set of evidences and some are dropped and some are upheld by the adjudicating authority. Appeal allowed.
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