TMI Blog2018 (6) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 - ALLAHABAD HIGH COURT], where it was held that 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 - demand cannot be upheld. A part of the demand stands confirmed on the basis of shortages in the stock of the final product detected by the officers during the course of their visit to the factory on 6.6.2008 - Held that:- The law is settled that such shortages, by themselves, cannot lead to the findings of clandestine removal in the absence of any evidence to show the manufacture and transportation and clearance as also the identification of the buyers - demand set aside. Penalty on Director - Held that:- Ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u Steels, who is a consignment agent. Para 22.1 of the impugned order clearly reveals that the transactions have transpired between the supplier Shyam Ingots Castings Pvt. Ltd. to the buyer consignee named as up . The Director in his statements deposed that the said coded words relate to his manufacturing unit and up refers to UP Rolling Mills, Raipur. 4. I find that the entire case of the Revenue is based upon the records recovered from M/s Monu Steels and based upon the statement of the representative of M/s Monu Steels as also the appellant s Director, Revenue entertained a view that the appellant is indulging the clandestine clearances. However, the Revenue has not made any enquiries from the buyer M/s UP Rolling Mills and has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order No. 51225-51226/2018 dated 4.4.2018. 6. Further, a part of the demand stands confirmed on the basis of shortages in the stock of the final product detected by the officers during the course of their visit to the factory on 6.6.2008. As per the Revenue, the Authorised Representative accepted such shortages and also paid duty to the extent of ₹ 1,01,258/-. However, the appellant had taken a categorical stand during adjudication that the production of MS ingots is recorded on estimate basis and their sale is recorded on actual basis in the factory, thus resulting in some differences. The said differences also attributable to burning losses and in the absence of any evidence to show that they have cleared the goods clandestinely, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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