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2020 (6) TMI 659 - AT - Central ExciseClandestine manufacture and removal - finished goods, Iron & Steel Ingot - period from March, 2007 to March, 2008 - demand based on documents recovered and statements recorded - HELD THAT:- The entries in the loose sheet might have created doubt in the minds of the Revenue, but it could not have been taken as a piece of evidence by itself. It would, at best, only create suspicion to further investigate the matter. Other evidence regarding procurement of raw material, manufacture of goods by engaging labour, usage of electricity, dispatch and transport of final goods, destination of final goods and receipt of sale proceeds etc, could have probably substantiated the allegation even if not proved with arithmetical accuracy. No such evidence has been produced by the revenue - In such circumstances, it cannot be held that the clandestine removal is proved, if not beyond doubt. The allegation/observation of suppression of production and clandestine removal is a serious allegation and it has to be established by the investigation by affirmative and cogent evidence, which is absent in the Order –in-original except relying upon such documents and entries there in, which has been disputed by the Appellant. Since the department has not adduced evidence to establish suppression of production, evidence of excess receipt of raw materials and clandestine removal of the goods with reference to any enquiry made with the buyers, supplier of the raw materials, confessional statement of transporters about transport of goods etc. the demand is not sustainable. Appeal allowed - decided in favor of appellant.
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