TMI Blog2008 (9) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... sh Kumar, for the Respondent. [Order]. M/s. Brims Products, Patna, respondet herein, was engaged in manufacture of product, namely, Pan Masala. Central Excise officers, while visited the factory of the respondent and after having made various checks and verifications, found 4 bags containing 120 kgs. of final product not entered in the register maintained by the respondent. Thus, the same were seized under the provisions of Central Excise Act, 1944, hereinafter referred to as the Act . On finding some loose papers in the dustbin with endorsement regarding certain transactions, investigation was carried out by the authorities at the transporters end, which according to the Revenue, revealed that the respondent had received some co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise duty as well as penalty. 3. Respondent preferred appeal. However, the order of adjudicating authority was confirmed by the appellate authority also. The respondent further preferred appeal before the Customs, Excise and Gold (Control) Appellate Tribunal, Eastern Bench, Calcutta, which was allowed holding that the charge of clandestine manufacture and surreptitious removal was required to be proved beyond doubt by the Revenue, which they have failed to do. The Tribunal also held that the evidence collected during the course of investigation, merely creates doubt in favour of the department. However, the same cannot take place of legal evidence. 4. Being aggrieved by the aforesaid order of the Tribunal, the Commissioner of Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Rakesh Kumar Singh, learned Standing Counsel for Central Government, submits that the evidence collected during the course of investigation at the transporters end confirmed receiving of consignment of large quantity of betel nut by the respondent which were not entered into the stock register. According to him, the aforesaid evidence definitely weighed in favour of the department s stand that consignments of betel nut as aforesaid, must have been consumed for clandestine production and subsequent removal of final product without entering into the statutory books for the purpose of evading duty. He contends that the records of different transporters clearly indicate that the consignments of betel nut were destined to reach the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some raw materials were received at the factory of the respondent during the said period, the same cannot become conclusive proof of production and clandestine sale to different parties. Due to lack of positive evidence, benefit of doubt will always go in favour of the assessee. 10. Accordingly, we answer the reference against the Revenue and in favour of the assessee and it is held that the receipt of one of the raw materials, does not conclusively prove clandestine manufacture and surreptitious removal of finished final product. Further, since the charge is regarding clandestine manufacturer and removal of finished product for evading excise duty, the same cannot be held to be proved on the basis of principle of preponderance of probabi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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