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2019 (1) TMI 245 - AT - Central ExciseClandestine removal - demand has been confirmed on the basis of entries in spiral note book recovered from the residential premises of Shri Vijay Kumar Goyal and other loose documents (slips) recovered from the premises of Shri Sanjay Goyal - retraction of statement after 2 years - Held that:- There are names of suppliers & buyers mentioned in the said records, however, during the course of investigation of the named buyers by the Revenue, the said buyers have denied to have purchased any goods from the appellant. The Revenue has not been able to identify any buyer of the said goods - also, no investigation has been conducted as regards supplier of raw materials to the appellant. Hon’ble Allahabad in the case of Continental Cement Company Vs. UOI [2014 (9) TMI 243 - ALLAHABAD HIGH COURT] has laid down various parameters to establish clandestine removal of goods. However, in the present case, no such evidence has come on record. Revenue is mainly relying on the statement of various persons to conclude that clandestine removal of goods have been established and nothing more is required to prove. It is well settled law that only on the basis of statements, huge demand cannot be confirmed, especially when statements have been retracted and no cross-examination has been given of the witnesses. The appellant have led cogent evidence being bill for acquisition of furnace in recent, furnace past contract given for its installation, etc. Such evidence was not found untrue. Further as per the panchnama, the furnace was under installation. No supporting raw material, moulds, labour etc was found, essential for manufacture of ingots. No ascertainment of furnace capacity by an expert was done. In the inspection by officers of Municipal Corporation of Delhi, in the near vicinity of date of panchnama, no manufacturing activity was found. The Calculation of purchase of copper scrap have also been included. The whole case of Revenue is based on assumption and presumption on unreliable evidences - appeal allowed - decided in favor of appellant.
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