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2018 (11) TMI 820 - CESTAT CHANDIGARHClandestine manufacture and removal - it was alleged that the appellant have received formaldehyde as input from the supplier without payment of duty and the same has been used in manufacture of their final product plywood/ply board which has been cleared clandestinely - Held that:- The Revenue has failed to establish from where the appellant has received other inputs and no any stock taking to that effect has been done to ascertain the truth, merely ,on the basis of the statement of third party or the documents recovered from the possession of the third party the case has been made out against the appellant that they have received one of the inputs clandestinely and manufactured of the final product which has been cleared clandestinely - the charge of clandestine manufacture and removal of the goods is not sustainable, merely, on the basis of the receipt one of the raw material, on the basis of the statement of the third party - demand set aside. Cross-examination not granted - principles of natural justice - Held that:- On the weighment slip, the name has been written of the appellant in handwriting, but the Revenue has failed to establish that who has written the appellant’s name on weighment slip. In the absence of the said evidence the weighment slip relied by the Revenue is not admissible - the Revenue has relied upon the statement of one of the alleged manufacturer of said goods who stated that they have cleared goods clandestinely to the appellant without payment of duty but no examination in chief of the statement of supplier has been done by the adjudicating authority and no cross examination of the said witnesses has been granted to the appellant - the charge of clandestine removal is not sustainable. The Revenue has failed to prove the charge of clandestine manufacture goods by the appellant - appeal allowed - decided in favor of appellant.
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