TMI Blog2018 (1) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished by him cannot be relied upon. There is no evidence of consideration received by said brokerage firm towards sale of goods to the Appellant No.1 unit. Demand on the basis of 15.080 MT of Crude oil allegedly procured by Appellant No.1 from M/s. Sonic Biochem through M/s. Sheetal Enterprise - Held that: - there is no evidence of Appellant No. 1 having received such goods. There is no evidence of transportation of goods to Appellant’s Unit or its consumption in Refined Oil nor any instance of production of Refined Soya Oil and removal of same without payment of duty or any buyer - no demand can be made in absence of any of such evidence. The demands made against the Appellant No.1 and penalties imposed upon Appellant No. 1 and 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lminated in the adjudication order dated 31.03.2008, wherein the partial proposed duty demand of ₹ 3,45,989/- along with interest and penalty were confirmed against the assessee-appellant. Besides, penalty of ₹ 1,00,000/- was also imposed on Shri Manohar Garg, the Appellant No. 2. 3. Feeling aggrieved with the adjudication order dated 31.03.2008; both the above appellants have filed appeals before the ld. Commissioner (Appeals) of Central Excise. Besides, the Revenue had also assailed the adjudication order against dropping of duty demand on 1227.395 MT of the goods (545 MT + 682.395 MT) on the ground that the assessee-appellant had manufactured Refined Soya Oil from said quantity and had cleared the same from its factory wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no demand can be made against them. 4.2 As regards demand on 324.15 MT of Crude Soya Oil, he submitted that the said demand has also arisen on the basis of pencil entries made in the brokerage register of M/s. Agrawal Co. That the reliance was placed on the statement of Shri Vineet Agrawal, Partner of M/s. Agrawal Co., wherein he stated that the payment of such supplies was made by him in cash is correct. Such huge amount of transaction cannot be carried out without any record at either end, which was not examined by the lower authorities. Moreover, Shri Vineet Agrawal did not appear for the cross examination. He further submitted that it has to be proved by the Revenue that the aforesaid quantities of Crude Soya Oil were received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated the findings recorded in the impugned order and further submitted that since Shri Vineet Agrawal of M/s Agrawal Co. accepted the removal of goods, therefore, the demand is sustainable on clearances of Refined Soya Oil. 6. Heard both sides and perused the records. 7. I find from the records that the demand has been made on the basis of Brokerage Register of Broker M/s. Agarwal Co., wherein the pencil entries were made in the name of appellant No. 1. During the investigation, Shri Vineet Agarwal accepted the removal of Soya Crude Oil to the appellant. Shri Manohar Garg, the authorized signatory accepted the receipt of 324.125 MT of Soya Crude Oil. However, subsequently he retracted his statement. During the adjudication procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Agarwal Co. cannot be considered as authentic, in absence of evidence of removal, its transportation and receipt by the Appellant No.1. On the other hand, the revenue has not been able to show the receipt of crude soya oil or its refining process undertaken by the Appellant no.1 or identity of buyers who received the goods. It is alleged that the crude soya oil was cleared to the Appellant No.1, who has manufactured Soya Refined Oil from such quantity of Crude Oil and allegedly cleared without payment of duty and that the Appellant No. 2 accepted the receipt of 345 Mts. of Crude Soya Oil. However, I find that the statement was retracted by him and no corroborative evidence except statement has been brought on record. The Appellant al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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