TMI Blog2012 (5) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... al. 2. This appeal is directed against the order in original No. 20/MP/2000 dated 29.11.2000. 3. The relevant facts that arise for our consideration are that the departmental officers visited the appellant s factory premises on 12.04.1995 and carried out searches. During the course of which, they found unaccounted semi-processed fabrics and processed fabrics lying in the premises. The officers, vide Panchnama dated 12.4.1995 seized the said offending goods and also recovered some incriminating documents from the appellant s factory premises and they had also recorded the statement of Partner of the appellant, wherein it was admitted by the Partner that there were illicit removal of the goods. Investigating officers further recorded st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in retracting the statement, as there were intermittent holidays, on account of Shri Mahavir Jayanti, Dr. Ambedkar Jayanti etc. It is his submission that the department was also informed about the retraction vide letter dated 18.4.1995. Without prejudice to the said submission, he would submit that the demand of duty is on illicit removals of 12,85,361.70 L. Mtrs. of processed fabrics and the statement relied upon by the Revenue, (which has been retracted) dated 12.4.1995 talks about clearances of only 4,22,292.95 L. Mtrs. as illicitly removed. It is his submission that there is inherent contradiction in the confirmation of demand based upon the statement of Partner of the appellant. It is his submission that the merchant manufacturers who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the statements of merchant manufacturers who had admitted that they had sent the grey fabrics to the appellant, as is brought out from the annexure C , it is his submission that there is no corroboration in the merchant manufacturers statements in respect of the demand raised as per the annexure D to the show cause notice. It is his submission that the allegation of clandestine removal cannot be sustained merely on the basis of private records, in the absence of any positive evidence and would submit that the case which has been made out on the basis of Kacha/Pakka challans and unsigned note books has no evidentiary value. 5. Learned DR would reiterate the findings of the adjudicating authority and would submit that there are evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akka challans inter-alia contain particulars such as, name of the merchant manufacturer, date, quality of grey fabrics, total meterage and name of the Mills i.e. the appellant, which led him to believe that the same has been issued by the merchant manufacturer after sending the grey fabrics to the Mill for the purpose of processing and the receipt of the said grey fabrics have been noted in the note books which was maintained by the persons in the grey section of the appellant s factory premises. (iv) That the investigation has brought out on record the unauthorised receipt of processing of grey fabrics and clandestine removal of processed MMF in the documents corroborated by the comparison statement of most of the recipients of the proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t recorded were all considered for the purpose of calculation of the alleged clandestine clearances by the appellant, were without any co-relation and without any substantiation, inasmuch as the impugned order gives the reasoning that the Kacha/Pakka challans indicates receipt of grey fabrics, while the statement of approximately 27 merchant manufacturers were not recorded to corroborate. All these inherent commission and omission has to be properly reasoned out by the adjudicating authority in his findings for confirmation of demand against the appellant. We find that the reasoning given by the adjudicating authority is not addressing all these issues, which were raised before him. In the absence of any such co-relation, we are of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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