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2013 (9) TMI 245 - AT - Central ExciseClandestine removal - demand based on confessional statement - M/s Centurian Laboratories (hereinafter referred to as M/s CL) are having factory at Vadodara and are engaged in manufacture of P&P medicines falling under Central Excise Chapter Heading No.30 of first schedule of Central Excise Tariff Act, 1985 and are registered with the authorities – Held that:- There is nothing on record as to unrecorded purchases or consumption of various other raw material in the manufacture of Frit, there is also nothing on record to indicate that the appellant had purchased the Quartz, Feldspar, Zinc, Borax Powder, Calcium and Dolomite and without accounting them used for the manufacture of Frit for clandestine removal. There is also nothing on record nor there is any statement of the suppliers of other raw materials, which would indicate that the appellant had received unaccounted raw material from the suppliers of these raw materials - There is a solitary evidence in the form of statement of supplier of one of the raw material i.e. Borax Powder, who indicated that the appellant had procured Borax Powder and not accounted the same in his record; and the said entries and information were deduced from the documents of the premises of Shri Anil Jadav and whose evidence has been discarded for having not been produced for cross examination; in the absence of any other tangible evidence to show that the appellant had been procuring the other major raw materials required for manufacture of Frit without recording in books of accounts, we are unable to accept the contentions of Revenue. Held that:- In the absence of any tangible evidence which would indicate that there was clandestine manufacture and clearance of the goods from the factory premises, demand of duty along with penalty and interest is not sustainable - appellant has not made any clandestine manufacture, which he has removed clandestinely and on which the duty was payable – Relying upon the judgment of Tejal Dyestuff Industries [2008 (7) TMI 412 - HIGH COURT OF GUJARAT AT AHMEDABAD], wherein it is held that recording of confessional statements would not be an end to the investigation and Revenue officers should be careful to ensure that they are not tricked out of regular and detailed investigation by making strategical confession which are retracted by an affidavit soon after they are made and which affidavit are again strategically held from the Revenue officers so that they become complacent and do not carry out fuller investigation, thinking that the confessional statements are made and not retracted was already done. - In the absence of any corroborative evidence, as to there being clandestine manufacturing and clearance of P&P medicaments, for the foregoing reasons, the impugned orders in our view are not sustainable – Decided in favor of Assessee.
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