TMI Blog2007 (11) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... from the respondents in respect of 'cone yarn' (cotton yarn on cones) alleged to have been cleared by them clandestinely during the period April, 1999 - September, 2000. The notice also proposed to impose penalties on the party under Section 11AC of the Act and Rule 173Q of the Central Excise Rules, 1944. It also proposed penalties on some co-noticees. These proposals were contested. The adjudicating authority (Commissioner) confirmed the demand of duty only to the extent of Rs. 55,387/- against the respondents. It dropped the rest of the demand for want of evidence against the party. The authority also imposed penalty of Rs. 55,387/- (equal to the amount of duty demanded) on the respondents under Section 11AC. The present appeal of the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he despatch register recovered from the factory contained particulars of clearances of cone yarn. A statement was recorded from the accountant of the respondents, wherein he admitted having cleared cone yarn (dutiable) in the guise of hank yarn (exempted). A statement was recorded from the Managing Director of the company also, who did not corroborate the accountant's statement. The officers of the department visited the premises of the traders/buyers, whose names had been mentioned in the above despatch register as also in the above statements. These traders/buyers stated that they had received cone yarn under cover of invoices and that the invoices were subsequently taken back by the respondents and invoices showing clearance of hank yarn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal's decision in Roxy Enterprises (P) Ltd. v. Collector of Central Excise [1991] (53) E.L.T. 585 (Tribunal)]. It is the case of the appellant that the department need not prove actual clearance with mathematical precision. According to them, it is enough, if there is evidence indicating a high degree of probability of the respondents having clandestinely removed cone yarn from their factory during the period of dispute. The pieces of evidence cited by the appellant to establish this probability include: (a) the despatch register recovered from their premises; (b) the doff notes recovered from the premises of traders/buyers; (c) the statement of the respondent's accountant; (d) the statement of one Shri C. Sanjeevi Perumal of M/s. G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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