Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 616 - AT - Central ExciseClandestine removal - shortage of finished goods and raw material - demand based on weightment slips - reliability on statements - it was alleged that appellant could not produce any record/documents relating to stock of raw material and finished goods - It further appeared that the stock of raw materials was unaccounted in the factory of M/s Prakash Ispat with an intent to remove the same after manufacturing of finished goods clandestinely. Held that:- The Department is heavily relying upon the statement of Shri Rajendra Prasad Jaiswal, Weighment Clerk of M/s. Jain Dharamakanta, Sikandrabad, to prove the entries mentioned in weighment slips allegedly belonging to the appellant. However, we find that the said statement of Shri Rajendra Prasad Jaiswal, Weighment Clerk is hit by Section 9 D of Central Excise Act, 1944 inasmuch as the learned Commissioner has not verified the fact that Shri Rajendra Prasad Jaiswal is dead or alive, therefore, the said statement cannot be relied upon as evidence - Also, there are inconsistency in his statement as explained by the learned Counsel for the appellant and these facts have not also been corroborated from the owner of M/s. Jain Dharmakanta. Hon’ble High Court of Allahabad in the case of Continental Cement Company Vs. Union of India [2014 (9) TMI 243 - ALLAHABAD HIGH COURT] held that charge of clandestine manufacture & removal is a serious charge & it has to be proved by bringing on record clinching evidence in the form of purchase of excess raw materials, use of extra electricity, sale of final products, clandestine removal, transportation, payment & realization of sale proceeds - in the present case, there is no evidence to prove that appellant was involved in clandestine manufacture & removal of goods. Appeal allowed - decided in favor of appellant.
|