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2017 (7) TMI 840 - CESTAT HYDERABADValuation - includibility - the allegation by department is that KLR had collected excess amount over & above Central Excise invoices resulting in under valuation and evasion of Central Excise Duty, that KLR supplied bits/hammers/rig parts without discharge of Central Excise duty and that they had indulged in large scale unaccounted procurement of raw materials/inputs - Held that: - Adjudicating authority has concluded that even if it is assumed that the said private records relate to KLR, there is no other evidence to drive home the point that the contents reflect the true picture. In this regard, we find that in the de novo proceedings, pursuant to Tribunal s directions, cross examination of Smt. Anuradha Prasad was conducted on 19.07.2004, wherein inter-alia, she has retracted her earlier statement of 02.08.1997 and had complained that the same had not been given out of her volition but as per the dictates of the officers who had recorded the statement. In such circumstances, the allegations of the department, which in any case were solely based on records recovered from the office of Smt. Anuradha Prasad and the statement of Smt. Anuradha Prasad, will then be jeopardy. We are, therefore, unable to find any fault with the adjudicating authority s findings and conclusions on this score. On the aspect of allegation that KLR had undervalued the rigs supplied to the customers, it is seen that the same is based on the statement given by customers as also the statements given by Shri K. Lakshma Reddy on various occasions. Like in the case of Smt. Anuradha Prasad, we find that Shri Lakshma Reddy had also retracted whatever he had stated in his earlier statements. We also find ourselves in agreement with the adjudicating authority s findings that even those allegations, made on the basis of such statements are not backed up by any corroborative evidence. The contention of KLR that on the date of visit to the factory by Department Officers, no unaccounted stocks of raw materials, either steel or buttons were found, has not been suitably countered by the department. This aspect definitely casts a doubt on the allegation of the department that KLR had been receiving raw materials in their factory without any accountal and using them for manufacture of unaccounted goods. The adjudicating authority has also found contradictions in the statements of raw material suppliers. In the circumstances, we hold that the adjudicating authority has been therefore correct in concluding that it would be very difficult to place reliance on them to sustain the charge of the department. Appeal dismissed - decided against Revenue.
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