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2017 (4) TMI 151 - AT - Central ExciseClandestine manufacture and removal - excess stock of MS Ingots to the tune of 116.487MT and shortage of stock of Sponge Iron and Pig Iron found - demand - Held that: - the entire demand is based on the loose sheets and other private records recovered from the respondent’s factory. Such private records raise doubt that the respondent has procured raw materials and not accounted the same in the records. Moreover, the author of such documents/private record has not been identified. From the records, it is found that no person of the respondent has explained the entries found in such private records. The Director or anyone else of the respondent has ever been questioned about such details found in the private records. Under these circumstances, the demand upheld on the basis only of such private records cannot be sustained. The allegation of unaccounted procurement of raw-material has not been corroborated by any other document recovered by Revenue during investigation. The department has not carried out investigation into many aspects. The evidences presented by the department, at best, can be considered as a reason to doubt whether the respondent has indulged in clandestine clearances. However, in the absence of clinching evidence supporting the charge of alleged manufacture and clearance, it is to be held that Revenue has not succeeded in proving the allegation of clandestine manufacture and clearance. Appeal dismissed - decided against Revenue.
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