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2018 (6) TMI 1250 - AT - Central ExciseClandestine removal - demand primarily based upon consumption of electricity - The entire case of the Revenue is based upon the records recovered from M/s Monu Steels and based upon the statement of the representative of M/s Monu Steels as also the appellant’s Director - Held that:- The law i.e. as to whether the third party records can be adopted as an evidence for arriving at the findings of clandestine removal, in the absence of any corroborative evidence, is well established - Reference can be made to Hon’ble Allahabad High Court decision in the case of Continental Cement Company Vs. Union of India [2014 (9) TMI 243 - ALLAHABAD HIGH COURT], where it was held that the findings of clandestine removal cannot be upheld based upon the third party documents, unless there is clinching evidence of clandestine manufacture and removal of the goods - demand cannot be upheld. A part of the demand stands confirmed on the basis of shortages in the stock of the final product detected by the officers during the course of their visit to the factory on 6.6.2008 - Held that:- The law is settled that such shortages, by themselves, cannot lead to the findings of clandestine removal in the absence of any evidence to show the manufacture and transportation and clearance as also the identification of the buyers - demand set aside. Penalty on Director - Held that:- Inasmuch as the demands confirmed against the manufacturing unit stands set aside along with setting aside of penalty, the penalty on the Director is also required to be set aside - penalty set aside. Appeal allowed - decided in favor of appellant.
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