TMI Blog2017 (4) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... was related to the value of the goods cleared clandestinely. There is force in the argument of the learned Counsel for the appellants that department did not compare the data with the data related to clearances of goods on which duty was paid and the goods manufactured by them which did not attract duty. We, therefore, find that the show cause notice is based on presumption. Therefore, subject of SCN dated 13-8-2004 is not sustainable - appeal allowed - decided in favor of appellant. - E/1066-1069/2007-EX(DB) - Final Order Nos. A/70766-70769/2016-EX(DB) - Dated:- 23-8-2016 - Shri Anil Choudhary, Member (J) and Anil G. Shakkarwar, Member (T) Shri B.L. Narasimhan and Hrishikesh, Advocates, for the Appellant. Shri Pawan Kumar Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llegation that the noting on the loose sheets were related to clandestine removal of dutiable goods and duty of ₹ 79,98,533/- was demanded through the said show cause notice. Further, another duty of ₹ 76,351/- was also demanded through the said show cause notice based on File No. 55. Further, there were proposals to impose penalty and proposals were also included in the said show cause notice for personal penalty on Shri Ved Chanana, Director of the Company, Shri Devendra Kumar Kakkar, Factory Manager and Smt. Chandrika and Shri V.K. Sharma. The noticee have submitted their reply to the show cause notice stating that they were manufacturing both dutiable and exempted goods and they were also maintaining their records properly a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions of clandestine clearances of dutiable goods. He confirmed the demand and appropriate an amount of ₹ 15 lakhs already deposited, imposed equal penalty and further imposed personal penalty of ₹ 45 lakhs on Shri Ved Chanana, ₹ 40 lakhs on Shri Devendra Kumar Kakkar, ₹ 50,000/- on Smt. Chandrika and ₹ 35,000/- on Shri V.K. Sharma. 3. Challenging the findings of ld. Original Authority as stated above through Order-in-Original No. 5/Commissioner/2007, dated 27-2-2007, the appellant is before this Tribunal, wherein the appellant M/s. Super Cassettes Industries Ltd., Mrs. Chandrika, Mr. Ved Chanana and Mr. D.K. Kakkar have filed appeals before this Tribunal. The grounds of appeal are as follows :- (a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to be assessed under Section 4 or 4A of the Act. (i) Legal requirement of evidence of procurement of raw material, labour employed electricity consumed, transport of such goods to their buyer/dealer and collection of payments and flow of funds relating to such transaction not met and hence allegation of clandestine manufacture and sale of goods is unsustainable. (j) No discrepancy was found in stocks of raw material. (k) No corroborative evidence from the buyers and others such as transporters, could be collected. (l) Demand is merely based on presumption and assumptions as no direct material evidence brought on record. (m) There was no cogent and reliable evidence for clandestine manufacture and clearance. (n) Shor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a clandestine manner. This exercise has not been done and it was only presumed that the data available on loose sheets was indicating the value of the goods cleared clandestinely. The show cause notice issued on the basis of presumption is not sustainable in law and therefore, the appeals may be allowed. 5. Learned Counsel for the DR has submitted written submissions. The written submissions are extracted from the impugned Order-in-Original and there is no addition in the written submissions beyond what is stated in the impugned Order-in-Original. 6. We have carefully taken into consideration the rival contentions. We have also gone through the statements and the various Annexures enclosed to the show cause notice. We find that in non ..... X X X X Extracts X X X X X X X X Extracts X X X X
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