TMI Blog2017 (8) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... ld in respect of goods mentioned in the seven parchis only on the basis of inculpatory statements given by Sh. J.D. Pant, General Manager and Sh. P.C. Jain, Director. We find from the record that Revenue has not undertaken any verification either with the buyers or even with the transporters. No investigation appeared to have been carried out to prove that such goods were manufactured in the factory but not accounted for. Clandestine clearance is a serious allegation and needs to be established on the basis of tangible evidence. It is well established fact that only on the basis of the inculpatory statement, the charges of clandestine clearance cannot be upheld - The inculpatory statements given by the General Manager and Director also d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roducts to the extent of 88.209 MT was noticed involving Central Excise duty of ₹ 4,31,199/-. Statements were recorded from Sh. J.D. Pant, General Manager and Sh. P.C. Jain, Director. On completion of investigation show cause notice dated 05.08.2008 was issued proposing demand of Central Excise duty amounting to ₹ 60,87,300/- on the basis of the kachha slips and inculpatory statements given by Sh. J. D. Pant, General Manager as well as Sh. Prem Chand Jain, Director. In reply to show cause notice the demand was mainly contested on the following grounds: (i) Statements recorded under Section 14 cannot be considered as relevant in light of Section 9D of Central Excise Act untill the makers are permitted to be cross examined; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the demand for excise duty and penalties. Appeal has also been filed by the Revenue challenging the dropping of the duty demand. 5. With the above background, we have heard both the sides. The assessee were represented by Sh. Arunabh Dey, ld. Consultant and Sh. R. K. Mishra, ld. AR for the Revenue. 6. Revenue has challenged the dropping of demand to the extent of ₹ 30.85 lakhs. The demand of about ₹ 60 lakhs was proposed in the show cause notice on the basis of the quantification relying on 32 kachha parchis recovered during search proceedings. The assessee contended during the course of adjudication that out of 32 slips, 25 slips of various dates were of different despatches, which correlate and reconcile with the exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of goods under invoices without payment of duty. He has further recorded that both Sh. J. D. Pant, General Manager as well as Sh. P.C. Jain, Director have given inculpatory statements under Section 14 of the Central Excise Act to the effect that goods covered by kachha parchis were clandestinely cleared without payment of duty. Further, the assessee has also paid the entire duty for the goods covered by 32 slips. These findings of the adjudicating authority have been challenged by the assessee in the present appeals. It is their submission that the goods covered by these seven slips were never despatched from the factory for various reasons. It is their submission that the kachha parchis were initially made for internal use indicatin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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