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2017 (12) TMI 1224 - AT - Central ExciseClandestine removal - 2031.421 MT of Sponge Iron - It is pleaded that at the time of visit of the officers to the factory on 04.09.2008, though the stock of finished goods. i.e. Sponge Iron has been checked, no discrepancy were found; that the Department's case is based mainly on the quantity of Iron Ore fed into the kiln, as determined from the entries in the production log registers and the assumption that the Sponge Iron yield of the plant is uniform @ 61% - Held that: - during the course of search proceedings, at the appellant's factory, the department has recovered various documents related to the manufacture of sponge iron i.e. production log register in which the details of feeding of raw material had been recorded. We find that there is no dispute about the fact that such records are recovered from the factory as well as the contents. On the basis of such production log register, the adjudicating authority has determined the total quantum of raw materials which have been used in the manufacture of sponge iron. On the basis of the statements recorded from Production Manager of the appellant, it has been inferred that the normal yield of sponge iron in the manufacturing process is in the range of 57% to 61% of the ore fed into the kiln. Taking the yield to be 61%, the Revenue has estimated the production and demanded duty on the same after deducting the quantity already accounted. During the course of search of the factory, the department has recovered several documents such as transporters bills, consignment receipt, weighment slips etc. showing receipt of sponge iron despatched from the appellant”s factory as well as records in loose sheets showing the despatch of the finished product to various customers. In some of these cases Central Excise invoices were found to have been issued but in many other cases no Central Excise invoices have been issued indicating, that a large number of consignments have been cleared without payment of duty. On the basis of these incriminating documents recovered by the Department, it is evident that large scale evasion of duty has been done by the appellant. Opportunity of cross-examination - section 9D of the Central Excise Act, 1944 - Held that: - For satisfying the requirements prescribed in Section 9D ibid, an opportunity for examination and cross examination of witnesses may be extended through an effective hearing to all connected parties. Additional evidence may also be admitted as per law. The impugned order needs to be set aside and matter remanded to the adjudicating authority - appeal allowed by way of remand.
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