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TMI Blog2014 (2) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ls Ltd. are engaged in the manufacture of Pharmaceuticals formulations. Appellant's factory as also sales offices cum godowns and residential premises of their director/authorized representative were put to search on 31.02.2000 and various incriminating document were recovered. The Revenue also obtained photocopy of the invoices supplied by an unknown informer. In all these invoices consignee was shown as the office of the manufacturing unit. The said photocopies of the invoices were having the same serial number of the regular/genuine invoices but the name of the consignee, description, quantity and the value of the goods shown in the photocopy of the invoices were different from the details shown in the regular invoices. 3. Statement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents. 5. On appeal against the above order, Commissioner (Appeals) held in favour of the respondent by observing that allegations of clandestine removal cannot be upheld on the basis of the photocopies of the invoices supplied by a casual informer. No original or duplicate were supplied by the informer nor any original or duplicate or the purported photocopies of the invoices were found in the factory premises or in the residential premises or office at Delhi. There is no admission in any of the statement recorded from the directors/employees of the company. As such by referring to various decision of the Tribunal as also of various High Courts, he held in favour of the assessee. For better appreciation I reproduce the relevant par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allegations that duty to the extent of Rs. 8,44,347/- has been evaded, then goods worth more than Rs. 52.77 lakhs should have been cleared without payment of duty. I find that such a huge Clandestine clearance cannot take place without corresponding huge and significant variance and discrepancy in the stock of raw materials, finished goods in the factory. The visiting officers examined the finished goods stock as well as stocks of raw materials and found neither excess nor shortage in any manner. Moreover in all cases of Clandestine removal stock verification is invariably done and excesses and shortages are noticed. It is an invariably done and excesses and shortages are noticed. It is an exiomatic truth that an assessee cannot manipulate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants and all are internal documents, prepared at Delhi Office as none of the customers as shown in the bills/challans: have ever admitted to having received the quantity of materials indicated in the respective bills/ challans: even the department has not summoned any of those customers and recorded any statement from them in order to establish the point that those quantities were infact supplied to them. Mere allegation is not proof: in the absence of customer's statements to support the case, there cannot be an adverse inference of clandestine removal of goods. Even where customers had given statements, the Hon'ble Tribunal has in case of M/s Paras Laminates Pvt. Ltd. Vs. CCE, Jaipur reported in 2005 (180) ELT 73(Tri.) held that 'the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase of raw materials, source of funds, excess consumption of electricity, excess or shortage of raw material or finished goods in the factory, evidence of transportation of goods in forms of transport vouchers, Lorry Receipts or statement of transporters affirmatively to the effect that they had transported the quantities of goods represented by those order recording forms and the like. Appellant's plea bears a force, that the said challans are nothing but these are, Order Recording form, used for monitoring of dispatches at Sales office. These cannot be used for covering the consignment. I find that, if it is a case of clandestine removal, the department has failed to bring on record the evidence regarding receipt of excess raw material ..... X X X X Extracts X X X X X X X X Extracts X X X X
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