TMI Blog2018 (8) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... he said statement and private diary entry of 3rd party i.e. of Sh. S.K. Pansari which contains the name of the appellant. The law as to whether the third party records can be adopted as an evidence for arriving at the findings of clandestine removal, in the absence on any corroborative evidence, is well settled. Only on the basis of statement of third party no demand can be made. Appeal allowed - decided in favor of appellant. - Appeal No. E/51262-51263/2018-EX ( SM ) - Final Order No. 52757-52758/2018 - Dated:- 10-8-2018 - Hon ble Mr. Ajay Sharma, Member ( Judicial ) Shri Manish Saharan, Advocate for the Appellant Shri P. Juneja, Ld AR for the Respondnet ORDER Per : Ajay Sharma The appeal has been filed from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2/2010 :- 5.2. On being specifically asked during the course of recording of statement dated 23.10.2009, supra and upon his denial having any transactions, through M/s Monu Steels (Prop. Shri S.K. Pansari), Shri Dilip Agarwal was shown the copy of statement of Shri S.K. Pansari recorded under Section 14 of the Central Excise Act, 1944 on 15.01.2007, wherein Shri S.K. Pansari has stated that he has correctly entered in his records all the transactions of sale of MS Ingots undertaken through him by various manufacturers. Shri Agarwal was asked to clarify entries as recorded in the registers/ diaries recovered by the Central Excise officers which revealed that M/s Maa Banjari Ispat Pvt. Ltd. 123-C, O.P. Jindal Industrial Park, Punkipatra, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pansari the names of several Steel manufacturers have been mentioned and that some of the manufacturers have accepted these transactions as genuine and have discharged their duty liability, establishing thereby the authenticity of diary contents/ entries. In spite of such clear evidences of the authenticity of diaries of Noticee No. 2, indicating therein transaction pertaining to Noticee no. 1, Shri Dilip Agarwal, emphatically refuted to have had any transaction with either of them and also expressed his unawareness as to why Noticee No. 1 s name appear in such diaries. 4. The finding of the Ld. Principle Commissioner about the statement of Shri Dilip Agarwal in para 3.5.24 of the impugned order is based upon the mis-interpretat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the same dairy entry the department is justified in proceedings against the appellants in the present matter. 8. Since some of the manufactures i.e. M/s. Sh. Shyam Ingot and Casting Pvt. Ltd. and M/s. Nutan Ispat Power Pvt. Ltd., Raipur, whose names were also found in the dairy recovered from Sh. S.K. Pansari proprietor of M/s. Monu Steel, accepted their irregularities and admitted the duty liability, therefore no corroboration was required in those cases. But in the present case the appellant did not admit the liability and rather submitted that the Revenue has not adduced any corroborative evidence to show the movement of the goods from the premises of the appellant to the premises of any buyers or the customers nor they brought o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ELT 249 (Tri.-Del.) and CCE ST, Ludhiana Vs. Anand Founders Engineers- 2016 (331) ELT 340 (P H), have categorically held that the findings of clandestine removal cannot be upheld basedupon the third party documents unless there is clinching evidence of clandestine manufacture and removal of the goods. 11. In an identical matter this tribunal vide its order dated 04.04.2018 in Appeal No. E/50526-50527/2018 SM titled as, Shree Consultants Pvt. Ltd Vs. C.C.E. S.T. Raipur set aside the demand which was also made only on the basis of the entries made in the records of M/s. Monu Steel and held as under: xxx xxx xxx 4. I find that the entire case of the Revenue is based upon the records recovered from M/s Monu Steels. Even in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the above decisions, I find no justifiable reasons to uphold the impugned orders. Accordingly, the same are set aside and both the appeals are allowed with consequential relief to the appellants. Similarly, this Tribunal in the matter of Excise Appeal No. E/50874/2018- Ex [SM] M/s. Ashok Ispat Udyo Vs.Comm. of C.Ex., CGST, Raipur Excise Appeal No. E/50812/2018-Ex [SM] M/s. Vijay Chand Bothra Vs. Comm. of C.Ex., CGST, Raipur, on identical facts set aside the demand since the same was based only upon the diary entries of Sh. S.K.Pansari proprietor of M/s. Monu Steel without their being any corroborative evidence. 12. Recently also this Tribunal in the following decisions set aside the demand since the entire case of Revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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