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TMI Blog2018 (12) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... raw material is Plastic Granules, Resin, etc. They were availing the facility of Cenvat Credit of duty paid on various inputs and capital goods being used in the manufacturing operations. 2. Their factory was visited by the Central Excise Officers on 12.03.2014, who conducted various checks and verifications. It is seen that no discrepancy was found in the stock of the raw material or the finished goods. However, the Officers recovered Nine Central Excise Invoices of parallel nature, which were not accounted for by the appellant in their statutory records. Further search of the factory led the Revenue to recover certain loose papers which were also seized under the Panchnama dated 12.03.2014. 3. Further investigations were carried out and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and the scribblings made in the loose paper related to clearances of their finished product without payment of duty. As such two chart were prepared being Chart A and Chart B. Chart A related to the entries made in the loose papers indicating that during the period from November, 2013 to February, 2014 the appellants have clandestinely cleared 365,660.80 KGs of their finished goods totally valued at Rs. 4,85,89,634/- involving Central Excise Duty of Rs. 60,05,679/-. As per Chart B prepared by the officers the allegations were that during the period from June, 2013 to July, 2013 they had cleared 15,660.50 KGs of their finished goods involving duty of Rs. 2,15,583/-. 5. Based upon the above, proceedings were initiated against them by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Harmeet Singh which are not inculpatory statements. In fact it stands contended before us that there are discrepancies in the statement of Shri Harmeet Singh himself wherein he has deposed that the final product was cleared in the market against cash whereas the fact remains that name of the appellant's buyers as mentioned in the said loose slips were of their regular customers. There is no evidence of any excess purchase of raw material or excess production of goods. In spite of the Revenue having the name of the buyers, they have not been contacted and no investigations stand made from the transporters. In such scenario, it is the contention of the appellants that the figures mentioned in some loose sheets cannot held to be figures of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only be the starting point of investigation with regard to the allegations of clandestine removal but duty cannot be demanded on the basis of certain documents and the clandestine removal findings cannot be sustained which are based upon surmises and conjectures where there is no proof of production of positive sufficient and tangible evidence. Appeal against the said decision of the Tribunal stands rejected by the Hon'ble High Court reported as 2015 (322) E.L.T. 616 (Delhi). Further in the case of Pan Parag India Ltd. vs. Commissioner of Central Excise, Kanpur reported as 2013 (291) E.L.T. 81 (Tri.-Del), while dealing with the theory of preponderance of probabilities it was observed that the same is applicable only when there are strong e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Authority would require a close scrutiny and it is well settled that the court must seek corroboration of the purported confession from independent sources. By applying the ratio of the above decision of the Hon'ble Supreme Court to the facts of the present case, we note that the deponent of statement, Shri Harmeet Singh have assailed the free and correct nature of the same by referring to the fact that they were made to deposit certain amounts at the stage of investigations itself to establish that the appellant was under pressure from the visiting officers and the statement cannot be considered to be a free and correct statement. We have also found self contradictions in the said statements with the facts on record. 11. In such circ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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