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2018 (7) TMI 255 - AT - Central ExciseClandestine removal - MS Ingots - the entire case of the department is based upon the entries in the diary recovered from one Mr. S.K. Pansari (proprietor of M/s Monu Steels) and also on the statement of the said Mr. S.K. Pansari - absence of corroborative evidence - Held that:- In the impugned order nowhere it has been discussed as to how the demand to duty is sustainable in the absence of any clinching evidence of clandestine manufacture and removal of the goods. The entire demand is based upon the records recovered from Sh. S.K. Pansari proprietor of M/s. Monu Steel. There is no evidence expect the said statement and private dairy entry of 3rd party i.e. of Sh. S.K. Pansari which contains the name of the appellant. The law as to whether the third party records can be adopted as an evidence for arriving at the findings of clandestine removal, in the absence on any corroborative evidence, is well settled. Only on the basis of statement of third party no demand could be made. Since the entire case of the Revenue is based upon the entries made in the records of M/s. Monu Steel without there being any corroborative evidence, the demand is set aside - As a result the penalty imposed on Sh. Mahesh Agarwal, Director is also set aside - appeal allowed - decided in favor of appellant.
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