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2019 (1) TMI 966 - AT - Central ExciseClandestine manufacture and removal - 28297.0 MT of M.S. Ingots - demand based on excess electricity consumption including the duty involved in alleged clandestine removal of MS ingots for the period w.e.f. 2005-06 to 2010-2011 - Held that:- The initial demand of ₹ 8,21,08,631/- has already been dropped to the major extent of ₹ 8,00,40,529/- qua excess consumption of electricity, relying upon the decision of Hon’ble Apex Court in the case of RA Castings Pvt. Ltd. [2011 (1) TMI 1302 - SUPREME COURT OF INDIA]. We do not find any infirmity in the order to that extent. The similar issue is no more res-integra as stand already been decided in favour of assessee. Therefore, to that extent, the order under challenge is upheld. Clandestine removal - entire case of the Revenue is based upon the records recovered from M/s Monu Steels about removal of finished goods to various customers and about details of procurement of raw-material and is based upon the statement of the representative of M/s Monu Steels - Held that:- Department has failed to obtain any document, as direct evidence, to corroborate the said recovered record. The same also finds mention in the order under challenge. Further, the Revenue has not made any other enquiries and has solely relied upon the entries made in the record of M/s Monu Steels - 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 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. Appeal allowed - decided in favor of appellant.
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