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2014 (6) TMI 384 - AT - Central ExciseDuty demand - Unaccounted receipts - Shortage in stock - Recovery of loose slips - Held that:- The duty demand of Rs. 2,83,703/- based on allegation of unaccounted receipt of 77.755 MTs of MS angles from S.S.Steel and their use in unaccounted manufacture and clearance of MS angles, the unaccounted receipt of this quantity of MS ingots mentioned in the paper slip had been accepted by Sh. Ranka in his statement. His subsequently plea that out of 77.755 MT of MS angles, 47.715 MT of ingots had actually received from M/s. Aggarwal Steel and is duly accounted for in Form-IV Register has been examined by the Commissioner (Appeals) and he has held that this plea is not acceptable on the ground that the value of the two consignments are different. - Thus the 77.755 MT of MS ingots mentioned in the paper slip as received from S.S.Steel had not been accounted for and hence duty demand of Rs, 2,82,703/- on the finished goods made out of these unaccounted ingots has been correctly upheld. The loose paper slips, in question, containing details of clearance of finished goods on 30.06.08 and details of receipt of MS ingots from S.S. Steel have been recovered from the factory premises of the appellant. Therefore in term of the provision of Sec 36A of the Central Excise Act, 1944, there shall be presumption about the truth of the contents of these paper slips and the burden is on the appellant to prove that their contents are false. In this case, Sh. Ranka, in his statement by explaining the entries in the paper slips has accepted the correctness of their contents. Therefore, there is no reason for discarding this evidence for the purpose of proving the allegation of duty evasion against the appellant - Once on the basis of the documents recovered from a manufacturer’s premises, unaccounted purchase of any of the principal raw-material or unaccounted sale of finished goods is clear, a presumption can be made of unaccounted manufacture and clearance of the finished goods without payment of duty and unless the manufacturer produces cogent and concrete evidence in his defense, the allegation of clandestine clearances of finished goods would be treated as proved and duty demand on this basis can be confirmed - duty demand and the penalty has been correctly upheld. - Decided against assessee.
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