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2024 (2) TMI 13 - AT - Central ExciseClandestine removal - manufacture and sale of brass/copper patti and sheets - entire case is booked solely based upon private records and statements of alleged purchasers/buyers of said goods - HELD THAT:- During investigation no evidence of any unaccounted money having been received by the appellant from any of the buyers was found. In fact investigation was not conducted at factory premises of buyers. Neither there was any entry in their private records showing any unaccounted payment made by them to the appellant. No evidence at all from the buyers located outside Gujarat to whom the goods was sold by the appellant has been produced. The record and the statement of the buyers are also inconclusive and not admissible as evidence and these persons were also in the nature of co-accused. No instance of any money having been received through any agencies have been cited in the show cause notice. Admittedly no evidence of the appellant having received the huge amount in unaccounted manner from buyers to whom goods was sold was found. Not a single instance of cash receipt at appellant’s end is on record. In such case when the allegation is based upon the statements of buyers which is not supported by even a single evidence, we are of the view that the demand does not sustain. It is evident from the fact that cogent evidence of disproportionate power consumption, capacity utilization and labour employed, or any cogent evidence of clandestine manufacture of unaccounted quantity alleged as clandestinely removed were not produced by the department. It is evident that unaccounted production in the factory of the Appellant has not been established and therefore the case of clandestine clearance of goods by the Appellant does not stand. The allegation of minor shortage of 1934 Kgs of copper sheet and 617 kgs. brass sheets is also not supported by any evidence as Panchnama dated 05.01.2015 does not record any mode of stock taking or weighment of the finished goods during panchnama proceedings - such allegation of clandestine clearance of goods based merely on above shortage of stock is not sustainable. The demands and penalties made against the appellants is not sustainable and accordingly the impugned order is set aside - appeal allowed.
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