2016 (10) TMI 864

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..... issioner (A) revenue has filed the present appeal. 2.  I have heard Shri R K Mishra Ld. AR appearing for the Revenue. Nobody appeared for the respondent. 3.  As per facts on record respondent is engaged in the manufacture of sponge iron. During the audit conducted in their factory for the period 2002-03 and 2004-05 certain discrepancies were found in the figures of raw materials as ref .....

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..... l and the same without payment of duty has been alleged solely on the basis of difference in consumption of raw material in two sets of record, without any tangible corroborative evidence to support such allegation. A demand of duty of Rs. 72,222/- is also raised on the appellant on the basis, of unaccounted receipt / income of Rs. 4,50,000/- which they have admitted during income tax survey dated .....

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..... ointed out during special audit there was some discrepancies in the figure of balance sheet and the statutory records. Such discrepancies are definitely a lead to proceed further for an investigation to establish clandestine removal with the help of corroborative evidence. However, the investigation has failed to bring on record any independent evidence to support the allegation and the demand has .....

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..... LT 242. Clandestine removal is a positive act and it is required to be proved beyond doubt on the basis of affirmative evidence and not on inference. In the present case the allegation about clandestine manufacture / removal is based on inferences drawn on the basis of difference in the figure and on the basis of unaccounted receipts/ income. There is no evidence to support such allegation. This .....

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..... d the merits of the case and read with the law laid down by the Tribunal in identical matters. 7.  Revenue in their memorandum of appeal has not referred to any further evidence thus leading to the fact of landestine activity on the part of the assessee. 8. I find no infirmity in the views adopted by Commissioner (A) and as such no merits in the revenue's appeal. The same is accordingly .....

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