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TMI Blog2015 (2) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, respondents are engaged in the manufacture of steel bars and rods, CTD bars and MS bullets, etc., falling under Chapter 72 of the Central Excise Tariff Act. Their factory was visited by the Central Excise Officers and various examinations were conducted. As a result, a private register marked as Register No. 7 was recovered from the respondents premises. By entertaining a view that the respondent was indulging in clandestine activities and the entries made in the Register reflected removal of their final products without payment of duty, further investigations were carried out. During the post seizure investigations, Revenue recorded the statements of various persons. 4. Based on the said investigations, proceedings were initiated aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a private record. It is the contention of the appellants that this record has not been maintained by the company but one Shri Nayak. Strangely, no statement has been recorded from Shri Nayak. The investigation appears to be shoddy. Even though the statements of the lorry owners Shri Imtiyaz Pasha, Mehboob Khan and Abdul Khadir Irshad has been relied, no opportunity was given to the appellant to cross-examine them. Even the cross-examination of Shri S. K. Chatterji, Counting Clerk was not allowed. Another point made by the appellant is that some of the goods were traded by M/s. Sudarshan Mercantile Corporation Pvt. Ltd. and such goods would not be manufactured by the appellants as they do not have a proper infrastructure to manufacture. Fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hor of the said Register Shri Nayak has not been contacted by the Revenue and his statement has not been recorded. He has also seen the statements of other persons which are not inculpatory in nature. He has also examined the electricity consumption and after taking into account that the high consumption was on account of installation of induction furnace, has concluded in favour of the assessee. 8. It is well settled law that the charges of clandestine removal are required to be proved by the Revenue by production of sufficient, positive and tangible evidence. The same cannot be confirmed on the basis of doubts and assumptions and presumptions. It is seen that the Revenue has mainly relied upon the entries made in seized Register. It is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es made in the said Register were clearances on payment of duty. I find that in the absence of any statement admitting clandestine activity on the part of the company, the said statements do not further the Revenue's case. 10. Revenue's case is that the goods were being manufactured by the respondents but were being cleared under the trading invoices of the other two companies i.e., M/s. Star and Steel Hardware, M/s. Mikson Corporation and M/s. Sudarshan Mercantile Corporation. The investigations conducted by the Revenue revealed that the said companies were not in existence. The respondents have contested the said allegation vehemently by submitting that the invoices of the said trading companies were in respect of the goods, which they a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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