TMI Blog2015 (9) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative, has clarified, in the statement recorded during the investigation that the inputs were actually received by them. Evidence collected by the Revenue is only in the shape of statements of third party. It is well settled that in the case of clandestine allegation, the onus to establish the same is on the Revenue, which is required to be satisfied by production of sufficient, tangible and positive evidence. The uncorroborated statements of third party cannot be adopted as an evidence, without corroboration from an independent source though such statements can be of some value but cannot be solely relied upon for the purpose of holding against the assessee. Revenue is silent on the issue that if the appellant has not received the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Directorate General of Central Excise Intelligence, Regional Unit, Hyderabad conducted a search in the premises of one M/s Usha Enterprises, in respect of the Central Excise maters relatable to that unit. They recovered certain incriminating documents and in terms of the said documents, certain Central Excise Invoices issued by one M/s SreeTirumala Steel Rolling Mills Pvt. Ltd, Visakhapatnam showing the appellant as consignee were recovered. On an explanation, Shri Ashok Garg, Managing Director of the said M/s Usha Enterprises deposed that two pages of the said record relatable to supplies made by M/s SreeTirumala Steel Rolling Mills Pvt. Ltd. relates to fake arrangement made by them with M/s Usha Enterprises as also with M/s G.S. Al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of ₹ 2,60,369/- stands availed by the appellant, on the basis of the invoices issued by M/s SreeTirumala Steel Rolling Mills Pvt. Ltd., on account of M/s Usha Enterprises, without actually receiving the said raw material. Accordingly proceedings were initiated against them resulting in confirmation of demand and imposition of penalty. 5. On appeal against the said order of the original adjudicating authority, the Commissioner (Appeals) observed that the entire case of the Revenue is based upon the statements recorded during the course of investigation, which statements are uncorroborated by any documentary evidence. He observed that the appellant's officers nowhere admitted that they have not received the raw material i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned orders including the order of the Tribunal vide which the matter was remanded, I find that the entire case of the Revenue is based upon the statements of the authorized representatives of M/s Usha Enterprisesand M/s SreeTirumala Steel Rolling Mills Pvt. Ltd. Apart from that, there is not even an iota of evidence on record to show that the appellant has not actually received the inputs in question. Even the said statements have not been tested about their correctness by granting cross examination. There is no inculpatory statement of the present appellant and on the contrary, the appellant's representative, has clarified, in the statement recorded during the investigation that the inputs were actually received by them. It is not the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the corresponding final products. It is not the Revenue's case that they have procured the raw material from any other alternative source. It is not only impracticalbut impossible to manufacture the final product without raw material in question. The appellants having reflected the raw material in their Cenvat credit account and having shown the utilization of the same, heavy duty stands cast on the Revenue to establish that such raw material was not the one which was covered by invoice in question and stands procured by the assessee from any other source. There is neither any allegation much less any evidence to reflect upon the procurement of raw material from any outside source. 9. In view of the above, I find no merits in the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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