TMI Blog2014 (9) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... oods over phone, the goods were lifted from the factory for delivery under delivery challans made in the name of genuine customers but the goods were sold to needy customers without any sales bills or delivery challans and against payment of hard cash. Thus the modus operandi adopted by the appellant firm stood clearly admitted in the aforesaid statement of Shri Balkrishna Agarwal, who was the Managing Partner of the appellant firm during the relevant period. There is no retraction of the confessional statement by Shri Balkrishna Agarwal. As regards the lack of corroborative evidence, it is a settled position of law that “admitted facts need not be proved” as held by the Hon’ble High Court of Madras in the case of Govindasamy Ragupathy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the Revenue and two filed by the appellant, M/s. S.M. Steel Ropes, Mumbai and Shri Balkrishna Agarwal, partner of M/s. S.M. Steel Ropes, against Order-in-Original No. 11/Commr/(AH)/2005, dated 28-1-2005 passed by Commissioner of Central Excise (Adj.) Mumbai. 2. Vide the impugned order, the learned adjudicating authority has confirmed a duty demand of ₹ 11,80,000/- against the appellant, M/s. S.M. Steel Ropes. He has further ordered confiscation of excisable goods seized under Panchnama dated 5-3-2008 valued at ₹ 2,15,490/- with an option to redeem the same on payment of fine of ₹ 50,000/-. He has also ordered for confiscation of Indian currency totalling to ₹ 11,01,300/- seized with an option to redeem t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on the statement of Shri Balkrishna Agarwal, wherein he had admitted to having manufactured and cleared excisable goods, namely, steel wire ropes of various sizes and dimensions to various parties. There is no corroborative evidence adduced by the Revenue in support of the contention that the noticee has manufactured and supplied these goods without payment of duty. Therefore, without any corroborative evidences, the confirmation of duty demand on the basis of strength of statement alone is not sustainable in law. It is also the contention of the learned Counsel that the appellant was a small scale manufacturer and the clearances made by the appellant were below the exemption limit. Therefore, the appellant was exempt from taking regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallans recovered from the appellant s premises during the Panchnama proceedings. Therefore, even though the delivery challans are not available at present, the computation of duty demand could not be faulted and therefore, the adjudicating authority should have confirmed the entire demand of ₹ 22,44,404/- as against ₹ 11.80 lakhs confirmed in the impugned order. As regards the seizure of currency the learned Additional Commissioner states that the currency seized from the premises of the appellant was the sale proceeds of the goods clandestinely removed and sold and therefore, they are liable to confiscation in terms of Section 121 of the Customs Act made applicable to Central Excise Act, vide notification issued under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods over phone, the goods were lifted from the factory for delivery under delivery challans made in the name of genuine customers but the goods were sold to needy customers without any sales bills or delivery challans and against payment of hard cash. Thus the modus operandi adopted by the appellant firm stood clearly admitted in the aforesaid statement of Shri Balkrishna Agarwal, who was the Managing Partner of the appellant firm during the relevant period. None of the statements have been retracted at any point of time. Further, in his statement Shri Balkrishna Agarwal had also made a declaration that the statement was made voluntarily without any force, threat or coercion. The adjudicating authority has confirmed the demand only on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that reliance can be placed on statement if they are based on consideration of relevant facts and circumstances and found to be voluntary. Similarly in the case of CCE, Mumbai v. Kalvert Foods India Pvt. Ltd. - 2011 (270) E.L.T. 643 (S.C.) the Hon ble Apex Court held that if the statements of the concerned persons are out of their volition and there is no allegation of threat, force, coercion, duress or pressure, such statements can be accepted as a valid piece of evidence. In the light of the above decisions, we are of the considered view that the confirmation of duty demand based on the voluntary statements of the Managing Partner of the appellant firm is sustainable in law. Consequently, the interest and penal liabilities imposed o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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