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TMI Blog2017 (1) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... terest and penalties under various sections. The impugned order also order confiscation of the seized goods during the search of the factory and cash to the tune of Rs. 8 lakh seized from the residence of Director. Penalty amounting to Rs. 23 lakh also stands imposed on Shri Rohit Aggarwal, Director. 2. The DGCEI searched the factory of the appellant as well as the residential premises of the three Directors. During the course of search, it was found that the copper ingots weighing 19.250 MT were being unloaded. On stock taking in the factory, the officers found 73.200 MT of Copper ingots (including 19.250 MT which was being unloaded) and 67.95 MT of Copper wire rods. The stock of Copper ingots as well as Copper wire rods were seized on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the allegations made in the show cause notice, is that first figure (column 2 above) indicates the days production in MT; the second figure indicates the stock of ingots in numbers at the end of day and the third figure refers to oil tank level at the end of the day. Oil is used to fuel the furnace for melting the copper wire rods. On the above basis, the demand of duty has been worked out as above. 5. The appellant has strongly resisted such a view and has disputed the understanding adopted by the Revenue about the figures found in these slips. The contention of the appellant is that Revenue has based its calculations on the basis of statements recorded from -Shri S K Chopra, employee of the factory. Such statement given by Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice has alleged that 31 slips were for transaction of wire rods and 13 slips were for ingots. The appellant has further highlighted certain in practicalities in terms of quantum of ingots received (as per the above slips) and use of such quantity of ingots within a very short time within which the alleged quantum of clandestine production is said to have taken place. 7. The appellant has also alleged violation of principles of natural justice. As against cross examination of four persons requested before the adjudicating authority, it was permitted only in respect of Shri S K Chopra. The deposition of Shri S K Chopra has established that original statement given by him had been obtained under duress. However, his deposition in cross ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly, he has come to the conclusion that the total quantity of 815 MT of finished goods have been cleared which is not accounted. The interpretation adopted by the Revenue authorities is on the basis of original statements given by Shri S K Chopra. However, it is seen from the records that Shri S K Chopra has retracted his statement. It is further seen that cross examination of Shri S K Chopra was allowed before the adjudicating authority. From the records of the deposition during cross examination, it clearly emerges that the original statement has been recorded by the Revenue authorities under duress. During cross examination, Shri S K Chopra has also given different interpretation of the figures contained in two recovered slips. If the la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese slips are in respect of raw material procured as well as finished products cleared. However, the statements given by Shri Gopal Krishnan as well as Shri S K Chopra give out different interpretation of the data. From these statements, it is not clear which slips cover the material received and which covers the finished product. In the circumstances, we have serious reservations about the trustworthiness of these documents. As observed by us in the preceding paragraphs, the allegation of clandestine clearance needs to be supported by evidence brought on record by investigations as held by the Hon'ble Allahabad High Court in the case of Continental Cement [2014 (309) ELT 411 (All)]. 14. From the discussions in the above paragraphs, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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