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2022 (7) TMI 1430 - AT - Central ExciseClandestine Removal - difference in figures of audit report and ER-1 return for the year 2006-07 - suppression of production of 1455.205 MT of steel ingots and 395.160 MT of steel rolled products in the daily stock accounts - evasion of Central Excise Duty - Extended period of limitation - HELD THAT:- The appellant being a public limited company the financial records are available on net all the times. But, the show cause notice has been issued on 01.03.2011 by invoking extended period of limitation. Apart from difference in figures of financial records and ER-1 return, no investigation was conducted to establish clandestine removal of goods which is serious allegation. No statement of has been recorded. In that circumstances the charge of clandestine removal of goods not sustainable as similar issue came up before this Tribunal in the case of M/S CHANDUKA HI-TECH STEEL PVT. LTD. VERSUS CESTAT, KOLKATA [2017 (11) TMI 2026 - CESTAT KOLKATA] where Tribunal has observed that the allegation of clandestine activities are serious allegation and are required to be based upon the evidences, which reflected upon the same. In the present case, the Revenue has not made any investigation as regards the clandestine manufacture and clearance of the appellant’s final product. In such a scenario, the said finding is neither warranted nor justified. Time and again it is held by the judicial pronouncements that merely on the basis of difference in the figures of audit report and ER-1 return without establishing the parameters of clandestine manufacture and removal of goods, the charge of clandestine removal is not sustainable. Therefore, on merits also, we hold that in the absence of any statement or investigation against the appellant with corroborative evidence, the impugned order is not sustainable. Accordingly, the same is set aside. Appeal allowed.
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