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2020 (6) TMI 224 - AT - Central ExciseClandestine removal - MS Flat - demand based on loose papers recovered during search, the physical verification of stock, its weighment and the admission of the director M/s Balajee - absence of corroborative evidences - HELD THAT:- The most important aspect of the whole case is that in the show cause notice there is no statement of any person, employee or director of the appellant company which can show that the impugned loose papers/ rough papers recovered from the factory of appellant are actually related to the clearance made by the Appellant. Moreover the revenue officer did not find the author of said loose paper/rough paper, there is no any other evidence available to corroborate the charge of the show cause noticee. The department did not verify the contents of the said loose papers with any alleged buyer of the said goods or recorded the statements of the said buyers or transporters who transported the said goods. In the absence of such corroborative evidence, no reliance can be placed on the said loose papers/rough papers. Further no evidence has been placed on record to show that excess raw materials were purchased or there was excess power consumption to corroborate the fact that there was clandestine removal. To prove the allegation of clandestine sale, further corroborative evidence was also required but no investigation was conducted by the Department - there is no evidence to support the allegations against the appellants. The adjudicating authority below has wrongly confirmed the demand despite there was no evidence to prove the alleged clandestine removal of goods by the appellants - appeal allowed - decided in favor of appellant.
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