TMI Blog2017 (10) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... ent - Shri S.A. Sayeed Shuhaibb, Adv. ORDER Per: Bench Brief facts of the case are that the appellants are manufacturers of Mild Steel Rounds and Flats. Director-General of Anti-Evasion, Chennai initiated investigation on the allegation that the appellants were engaged in illicit manufacturing and removal of excisable goods clandestinely under the cover of some other Bill Traders' invoices without payment of Central Excise Duty. During investigation, the appellants made payments of ₹ 2,50,000/- under protest. On the culmination of the investigation, a show-cause notice No.30/98, dated 09.07.1998 was issued on the appellant, demanding Central Excise duty of ₹ 16,89,785/-, along with applicable interest bes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n clearing the goods and realizing the sale proceeds. The buyer's of steel products in Kerala had admitted in their statements that they had received MS Rounds from manufacturers in Chennai and from respondents. Since the raid on respondent was conducted after a gap of 40 to 50 days from the search operations conducted on Bill Traders', the respondent got sufficient time to set his records correct. That only for this reason, the officers could not find discrepancy is stock position of finished goods and raw materials. The partners have given voluntary statements admitting the activity of clandestine manufacture and clearance. Further, the power consumption has gone up or remained the same during 1994-95 and 1995-96, but the producti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... landestine clearance. Apart from some statements and third party documents alleged to be seized from Bill Traders, we do not find any cogent evidence put forward by department to establish clandestine clearance of goods. 6. Admittedly, there is no discrepancy found in the records maintained by the respondent. In several judgments, it has been held that consumption pattern of electricity alone cannot be the basis for allegation of clandestine clearance. The Commissioner (Appeals) has summed up the evidence available in case in para 5.14, which is worth reproducing as under:- (i) The stock of finished goods was not found in excess; (ii) No discrepancy in the stock of raw material was detected at the time of the visit of the Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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