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2016 (2) TMI 763 - CESTAT NEW DELHI

2016 (2) TMI 763 - CESTAT NEW DELHI - 2016 (335) E.L.T. 297 (Tri. - Del.) - Imposition of penalties - sustainability of demand of duty on the finished products based on the evidence put-forth by the Revenue in the proceedings before the lower authorities - Held that:- In the present case, the corroboration said to have been made is the admission statement of the appellant/assesses. Revenue stopped investigation on recording statement. No further verification or evidence was sought to be recovere .....

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hich duty is demanded is M.S. Angles and Channels, etc., which are made from M.S. Ingots, which are in turn made from purported clandestinely received sponge iron. The statements did not provide details of receipts with dates, manufacture or sale to identifiable buyers etc. It is essential to have some piece of corroboration for such a clandestine activity other than the sole evidence of general admission statement of the Director or /partner. The contents of the statement itself was contested a .....

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ipur. Three appeals are filed by appellant/assessee and three are by individuals against imposition of penalties. Since the issue involved is identical, these appeals are taken up together. 2. The brief facts of the case are that the officers of DGCEI, Raipur, based on certain intelligence, conducted certain search and inquiry with reference to activities of M/s. Indian Steel and Power Pvt. Ltd., Raipur. During the course of verification of the documents and pen drive recovered from the City off .....

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Strips & Tubes Pvt. Ltd.; 44.37 MTs of Sponge Iron to Shri M/s. Shriram Rolling Mills. As a follow up, statements of Shri Sunil Kedia, one of the Directors of M/s. Raipur Forgings Pvt. Ltd., Shri Sunil Agarwal, Director of M/s. Krishna Iron & Strips Pvt. Ltd. and Shri Sandeep Gidwani, Partner of M/s. Shriram Rolling Mills were recorded. All of them confessed to the receipt of the above sponge iron respectively in their units for further manufacture and unaccounted clearances of M.S. Ang .....

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submitted that the whole case against the appellant /assesses was based on recovery of certain details from third party and thereafter statements were recorded from the individuals of the appellant company. She submitted that there is no corroborative evidence regarding transportation of the said unaccounted raw materials, manufacture in respective units, first into M.S. Ingots and thereafter into M.S. Angles and plates. There are no corroborative evidences regarding details of sales of finishe .....

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Hence, there is sufficient corroboration in the case. Ld. AR submitted that when there is an admission statement given before the officers, which was not retracted till the show cause notice was issued, the same is admissible as evidence and confirmation of duty has been rightly made by the lower authorities. He further submitted that the Tribunal in S.M. Steel Ropes - 2014 (304) ELT 591 (Tribunal-Mumbai) held that duty demand can be confirmed based on the confessional statement which was volunt .....

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he contents of the pen drive given by the Director of the said company, further statements were recorded at the appellant s end. On admission by the appellants regarding receipt and further manufacture of un-accounted excisable products, the investigation stopped. There was no further inquiry or verification regarding transportation, actual manufacture of M.S. ingots, thereafter M.S. Angles, using such clandestinely procured raw materials. In other words, the whole demand rests only on the admis .....

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7) ELT 136 (Tribunal-Delhi) examined the various case laws in a similar sets of circumstances. The Tribunal relying on the decision in Commissiioner Vs. Manoj Kumar Pani - 2010 (260) ELT 92 (Tribunal), Tejwal Dyestuff Industries - 2007 (216) ELT 310 (Tribunal) and Hon ble Delhi High Court in Dhingra Metal Works - 2010-TIOL-693-HC-DEL-IT held that though confessional statement may be starting point of investigation, in the absence of other evidence indicating clandestine removal, the same cannot .....

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