TMI Blog2018 (1) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of transporters or purchasers whose name according to the revenue was mentioned on the delivery challans recovered from the factory premises and office premises of the main appellant. There is no iota of an evidence produced by the by the Revenue in the allegation in the show cause notice of purchasing of unaccounted raw-material, clandestinely manufactured the goods which could have been ascertained by the unexplained consumption of resources and the movement of the goods clandestinely from the factory premise is not established in any form. The Division Bench of the Tribunal in the case Arya Fibre Ltd [2013 (11) TMI 626 - CESTAT AHMEDABAD] has held that there has to be corroborative evidence of actual manufacture of the goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , interest thereof and also imposing penalty on the main appellant and penalties on the two other appellants. All the three appellants contested the show cause notice on merits as also on limitation. The Adjudicating Authority did not accept the contentions raised and confirmed the demands raised alongwith interest and imposed penalties on all the three appellants. The appellants preferred appeal before the First Appellate Authority also were rejected. 3. The Ld Counsel appearing for the three appellants takes the Bench through the entire case records and submits that the lower authorities have only relied upon partners statements under which the demand of duty liability has been confirmed; that there is no corroborative evidence as to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lained the contents of the statements in his language by one of his employees; that the so called retraction filed by the Appellants is determined by the finding of the lower authorities on what was received by the addressee was the request for copies of the statements and not the affidavit which was filed for retraction of the statements; the subsequent submissions has to no shortage of the stock, is totally incorrect submissions as if the details were available at the time of investigation they should have been produced; the challan which were recovered from the office premises and the factory premises which indicated illicit clearance of is very important evidence which is not explained by the appellant in the appeal, It is his further s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Appellate Authority explanation which has not been properly appreciated. The explanation is as under: RG 1 stock on 28/02/2014 - 35,275 kgs Production on 1.3.2014 upto the time of stock taking 10,550 kgs Total - 45,825 kgs Less clearances under invoice 199, 200 and 201 dt 1.3.2014 - 20,000 kgs 25,825 kgs Physical stock found as per Panchnama - 25,550 kgs 7. The above said explanation given by the main appallant was not dealt in any manner by the lower authorities. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue that main appellant has approximately removed clandestinely 2,78,200 kgs of Zinc oxide during the period October 2013 - Feb. 2014 which is next to impossible unless done by the transporters transporting the bags of Zinc Oxide. In the entire investigation, Revenue authorities have not called in any transporter for recording of statement or the partners were also not questioned as to how the movement of such huge quantity of Zinc Oxide took place; also there is no evidence to show that the main appellant or the individual partners had received any amount of consideration in cash which remain unaccounted. In the absence of the any evidence and further investigation by the authorities on these points, I find that Revenue s case fai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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