TMI Blog2017 (5) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... . During the course of search, one small diary named as ledger book was recovered from Sh. Apreash Ghosh, an employee of the firm. In the follow up action an inquiry was caused with the transporters and resumed two registers maintained by them. The statement of transporter was recorded. On the basis of entries recorded in the transporter register and diary recovered from Sh. Apreash Ghosh, it was alleged that the appellant had evaded the payments of Central Excise Duty by clandestine removal of the goods. The show cause notice was issued accordingly and the Adjudicating Authority confirmed the demand on the charge of clandestine removal of goods, consequently, the demand was confirmed. The said order was challenged by the respondent before the Ld. Commissioner (Appeals) who set aside the adjudication order by dropping the charge. Aggrieved from the said order, the Revenue is before me. 3. The Ld. AR submits that Sh. Jagdish Dogra has admitted that on the direction of the director, they have cleared the goods on the strength of parallel invoices and the transporter Sh. Munish Verma has confirmed the existence the chain of action resulting in clandestine removals of the goods. Fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting that the goods shown in their registers were removed from the appellants factory; statement of the authors of the diary/cash ledger with regard to nature of the entries made by them in the said records; statement of the appellant s admitting any such removal without payment of duty and statements of any buyers to whom the clandestinely removed goods were sold. They submit that the transport s registers only mention the address of the appellant s factory and not the quantity of the goods removed. They also point out that they have submitted a reconciliation statement in respect of the alleged clandestine removals as detailed in annexure A and B to the show cause notice, before the adjudicating authority who had not considered the same on the ground of the dubious nature of working of the appellants. They are relying upon several judgments and submit that as per those judgments, the charge of clandestine removals against them is not proved. 5. As per facts of the case, the diary/cash ledgers were recovered from the appellant s unit. After verification the departmental officers have identified 27 entries which are being attributed to clandestine removals of 277.950 MTs of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e private note book maintained by Ram Subbu, a part time employee working for several other units. There is not other evidence in the form of seizure of clandestinely removed goods or invoice or purchase of raw materials, etc. to corroborate the entries. Therefore, the judgment cited by the appellants support their case. This citation has been applied in large number of judgments and the same has not been overruled. We have also noticed that in similar matters pertaining to match industries, the Tribunal examined the issue of clearances of matches and clubbing of the clearances of various match units as in the case of A. Rathinam, Prop., Michael Match Works v. CCE[1992 (60) E.L.T. 451. The Tribunal examined the issue of clubbing of 8 match industries situated in the same compound and having a common trading agent. On a detailed examination of the evidences, the Tribunal set aside the order of the Commissioner, Central Excise by applying the ratio of earlier judgment rendered in similar match work cases as in the case of Premier Matches v. CCE [1991 (51) E.L.T. 377; Vasuki Match works v. CCE (1990 (49) E.L.T. 415]; and Sekhar Match Industries v. CCE [1990 (48) E.L.T. 599]. There are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly. 6. In the above judgment the Hon ble CESTAT after considering the material evidence on record has held that entries made in the different material register maintained by the security staff at the factory gate is not conclusive evidence to sustain the charge of clandestine removal unless the same is supported by other evidence such as raw material consumed, goods actually manufactured and packed, etc. 7. I have also perused the other case laws relied upon by the appellant in support of their contention that the charge of clandestine removal made out against them was not proved on the basis of entries of diary/cash ledger and transporter registers. In the case of Utkal Polyweave Industry Pvt. Ltd. Vs. CCE Bhuvneshwar 2001 (136) ELT 520 (Tri. Kolkata) the Hon ble CESTAT while dealing with evidence of clandestine removal has held as under: Clandestine removal Evidence Issue notes by assessee in the shape of directions to their staff to supply a particular quantity which may not be cleared under one gate pass on one day Hence particulars therein may not tally with Central Excise records No adverse conclusion can be drawn based upon the sole entries made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the essential evidence required to establish the case of clandestine removals. Similarly, in the case of Commissioner of Central Excise Chennai Vs. Dhanavilas ( Madras) Snuff Co. 2003 (153) ELT 437 ( Tri. Chennai) , it was held as under ; Clandestine removal Accounts, Records and Returns, Evidence Entries of despatches in Private Parcel Note Book not, in absence of credible corroborative evidence, sufficient to sustain charge of clandestine removal- Section 11A of Central Excise Act, 1944. It has also been now well laid down that mere entries made in the private note book are not sufficient to hold the charge of clandestine removal. In the present case, the Commissioner has scrutinized the entries made in the note book and found that in the note book there are entries made with regard to goods cleared under the invoices and also with regard to amounts received from them. He has also noted that there is no deletion made in the note book in respect of goods despatched under proper invoices.[para 6] Clandestine removal Accounts, Records and Returns Private Parcel Note Book Evidence, Statement, cross-examination Implicatory statement of Assessee Company s Accountant admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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