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2016 (2) TMI 761 - CESTAT NEW DELHIDemand of excise duty on unaccounted, clandestine removal of re-rolled products of iron/steel - recovery of certain documents at the raw material supplier's end and statement of the Director of the appellant - Held that:- No other verification, including the verification at the appellant's premises has been made during the investigation. There is absolutely no corroboration relating to transportation of unaccounted sponge iron, payment of amount, manufacture of MS Ingots out of sponge iron and further manufacture of re-rolled products using such ingots, clearance of re-rolled products, details of transport or buyers of such unaccounted final product. Though it is not feasible to have evidences on all the above aspects, it is certainly required to have at least a few corroborative evidence to assert clandestine receipt of raw material, manufacture and clandestine removal of dutiable final products. In the present case such evidences are completely lacking. It is relevant to note that the learned Commissioner (Appeals) set aside the penalty imposed on Shri Drolia on the ground that he has joined the company as Director on 01/7/2008 and as such was not involved in the clandestine removal that happened during November 2007 to April 2008. There is element of contradiction here to the extent that while admitting that Shri Drolia was not with the company as Director during the impugned period, his statement to support the clandestine clearance during that period was relied upon. Even the purported admission in this statement is not based on any material evidence like private records, payment details etc. Thus the whole case of clandestine manufacture and clearance is without sound basis of corroborative, admissible evidences. - Decided in favour of assessee
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