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C.C.E. & S.T. -Raipur Versus P.D. Industries Pvt. Ltd.

2015 (11) TMI 455 - CESTAT NEW DELHI

Duty demand - Clandestine removal of goods - Imposition of penalty - Held that:- The records reveal that the whole case of clandestine removal is based merely on the entries found in the books of Commission agent and transporters. They were acting as agent and transporter not only for the Respondent but also for other manufacturers. The department has not conducted any physical verification of stock of finished goods or raw material. The allegation is not supported by data of purchase of excess .....

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ries of document seized from the premises of third party, it is for them to prove the genuineness of those entries with the Respondent. The proceedings and allegation of clandestine removal cannot be based on surmises and conjectures or mere suspicions. The appellant has not been able to demonstrate anything to disturb the findings made in the impugned order. - Decided against Revenue. - Appeal No. E/54764/2014-EX(SM) - Final Order No. 52993/2015 - Dated:- 29-9-2015 - Ms. Sulekha Beevi C.S., Mem .....

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t Service and M/s Purwanchal Road Carriers are engaged in transportation of Sponge Iron, M.S. Ingot, M.S. Billet by Road from factory premises of various manufacturers including the respondent. M/s Kailash Traders is a Commission agent/broker who deals in various items of Iron & Steel Products. Acting upon information that some Iron & Steel manufacturer are engaged in clandestine removal of goods, the office premises & residence of M/s Kailash Traders was searched. Later search and v .....

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er the officers of the department observed that invoices have been issued by Respondent in substantial number of cases, but with regard to 604.390 MT of Sponge Iron, there were no sales invoices issued by Respondent. Similarly on verification of dispatches of M/s Shree Bajrang Transport it was found that no invoice was issued against 124.80 MT of Sponge Iron. Again, dispatches of records pertaining to M/s Purvanchal Carriers compared with sales details provided by Respondent though invoices have .....

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amount of penalty, besides separate penalty of ₹ 3,08,000 on Shri Surendra Agarwal being the Director of the Respondent unit. The respondents filed appeal before the Commissioner Appeals who set aside the order. Aggrieved the revenue is now before the tribunal. 3. The learned AR, Shri M.R. Sharma reiterated the ground of appeal and vehemently argued that as the records of transporters and the commission agent revealed that their services were utilized by Respondent for clearance of goods, .....

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s invoices issues by Respondent. That the Commissioner(Appeals) has over looked such vital evidence. Further that Shri Kailash Agarwal, the Commission agent deposed that he used to write B with the invoice number against the entries in the case of sale invoices which was issued by manufacturers and when no invoice was issued he used to write R against the entry. That these evidences established the case of removal of goods in clandestine manner. 4. Per Contra, the learned Counsel Shri M.P. Singh .....

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ies found recorded in the records of said Transporters and Commission Agent can not be held to be sufficient piece of evidence to confirm the demand of duty and allegation of clandestine removal. It is well settled law that there has to be some concrete evidence in the form of receipt of raw materials, shortage of raw materials, clandestine manufacture including use of electricity, excess or shortage of inputs found in the stock, flow back of funds, purchase of final products by parties alleging .....

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o. 1 in clearing the said alleged quantity of Sponge Iron without payment of Central Excise duty and also there was no admittance by the said Transporters to the effect that they have dealt/transported the alleged goods from the appellant No. 1 which were non duty paid. Thus mere entries of records of Transporters and Commission Agent cannot be the basis of alleging the charge of clandestine removal. There is no evidence pertaining to the excess use of electricity for the purpose of manufacture .....

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