TMI Blog2018 (5) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... arriving at the findings of clandestine removal, in the absence of any corroborative evidence, is well established - the findings of clandestine removal cannot be upheld based upon the third party documents, unless there is clinching evidence of clandestine manufacture and removal of the goods. Penalty u/r 26 of CER on M/s Kailash Traders - it is alleged that that he has supplied the unaccounte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Rule 26 of Central Excise Rules, 2002. 2. After hearing both the sides, I find that initially demand to the extent of ₹ 8.99 crores was issued against the appellant on the allegations of clandestine removal, which were primarily based upon consumption of electricity. However, Commissioner, while adjudicating the matter dropped the major part of the demand by relying upon the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. When the Director of the appellant was contacted by Revenue, he very clearly, in his statement recorded by the officers, deposed that he does not even know M/s Monu Steels. Further, the Revenue has not made any enquiries from the buyer M/s Sapna Steels others and has solely relied upon the entries made in the record of M/s Monu Steels. 5. The law i.e. as to whether the third party records ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods. 6. There is also a penalty of ₹ 50,000/- upon M/s Kailash Traders in terms of Rule 26 of Central Excise Rules, 2002 on the allegations and findings that he has supplied the unaccounted raw material to the appellant, which has been further used by them for manufacture of their final product cleared clandestinely. M/s Kailash Trader is a registered dealer, dealing in sponge i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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