TMI Blog2014 (3) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... g the searched. Admittedly the clandestine removal charge is a serious allegation and has to be established by adducing some positive and cogent evidence, corroborating the same. In the absence of any other evidence, allegation of clandestine removal can not be upheld. - Demand set aside - Decided in favor of assessee. - Appeal No. 1998-1999/2010-Ex[SM] - FINAL ORDER NO. 50592-50593/2014 - Dated:- 19-2-2014 - Ms. Archana Wadhwa, J. For the Appellant : Shri R.C. Gupta, Advocate For the Respondent : Shri B.B. Sharma, AR JUDGEMENT Per Ms. Archana Wadhwa: The appellant is engaged in the manufacture of Switchgear of North-West brand falling under chapter heading 85.36 of the schedule to Central Excise Tariff Act, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturing unit as also on the managing director. 5. On an appeal against the above order, Commissioner (Appeals) vide his order in appeal dated 12.01.2007 set aside the same on the ground that the entries made on the loose papers cannot to be considered to be a proper evidence for clandestine removals. Accordingly he set aside the confirmation of demand and imposition of penalties on the appellant. 6. Being aggrieved with the said order of Commissioner (Appeals) revenue filed an appeal before the Tribunal, which was disposed of vide final order No. 392/2009 SM(BR) dated 12.03.2009. The relevant part of the said order is being reproduced as under:- 4. Learned Advocate on behalf of the respondents reiterates the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rap are accepted, the generation of scrap would be to the tune of 58% to 82%, which is not possible. However the original adjudicating authority as also Commissioner (Appeals) in remand proceeding did not take into consideration the verification report and confirmed the demands and imposed penalties. Hence the present appeal by the appellant. 8. When the matter come up on the previous occasion, a direction was given to the revenue to place on record the relevant report as regards the quantum of generation of scrap. The same stands produced under the cover of letter dated 20.09.2013 vide which the relevant report dated 16.01.2006 addressed by the Assistant Commissioner of the Joint Commissioner stands produced on record. For better app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dded the Kachha slip figure in the figure shown in the RG-1 register. The consolidated figure of Kachha slips and Annex. l ll are enclosed for perusal and necessary action please. 9. As is clear from the above report that as per the allegation made by the Revenue, the scrap generated by the appellant would be to the tune of 57% to 88%. In a unit manufacturing electrical goods, generation of scrap to the extent of 86% is not only difficult but is an impracticable approach of business. If the said allegation is accepted, the same would lead to the emergence of finished goods to the tune of 14% only, which no businessmen can afford to do. 10. Appeal from the above, I find that the entire case of the revenue is based upon the loose s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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