TMI Blog2019 (1) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... ther documents to corroborate the said recovered record. Further, the Revenue has not made any enquiries regarding manufacturing of excess quantities of finished goods as well as further sale of same in the market and has solely relied upon the entries made in the record of M/s Monu Steels for demanding central excise duty. Similarly for the record from M/s Kailash Traders as far as the raw material is concerned, Department couldn’t adduce any other corroborative piece of evidence. The law i.e. as to whether the third party record can be adopted as an evidence for 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d steel products on commission basis. During the search of the office premises of M/s Mono Steels certain incriminating documents in the form of diaries, files, ledgers were recovered which as per the Department were showing clandestine removal of MS Ingots by various induction furnace units including appellant No. I (M/s Hanuman Ispat Pvt. Ltd.) and same were seized by the officers. Similarly, the premises of appellant No. III (M/s Kailash Traders) were also searched by the officers. It is worth mentioning that M/s Kailash Traders are also working as a commission agent for sale and purchase of sponge iron to the manufacturers of iron and steel products. At the premises of M/s Kailash Traders also the officers have recovered certain ledgers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of so called confessional statement of proprietor of M/s Mono Steels such a demand of central excise duty cannot be confirmed without any corroboration in the form of transportation of material, manufacture of excess finished goods at the same time no investigations have been undertaken by the Department as to how such a big quantity of finished goods were got manufactured and sold. The Department has failed to identify any buyers of such a huge quantity of clandestinely manufactured and sold goods. 3. The learned Advocate has also assailed the findings of the impugned order also saying that the statements of Shri S.K. Pansari relied by the Adjudicating Authority are very general in nature and does not involve the appellants specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture, transportation and the identification of the buyer of such excess manufactured and cleared goods. The learned Advocate has also relied upon the decision of Hon ble Allahabad High Court in the matter of M/s Continental Cement Company vs. Union of India 2014 (309) E.L.T. 411 (All.) saying that the Hon ble High Court has prescribed a criteria for confirmation of demand in case of allegedly clandestine manufacture and clearance of excisable goods wherein it has been held that :- Unless there is clinching evidence of the nature of purchase of raw materials, use of electricity, sale of final products, clandestine removals, the mode and flow back of funds, demands cannot be confirmed solely on the basis of presumptions and assu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es at the end of the buyers of the finished goods. The Department has also not strived to prove that as to how such a huge quantity have been manufactured and as to how such a huge quantity was ultimately sold by the appellant in the market. We also find that the statement of various persons recorded during the course of investigation can only be taken for consideration, if either there is a full proof corroboration or if the same has been confirmed under the cross examination during the course of adjudication. We find that neither there is a full corroboration of alleged excess manufacture or clearance or purchases of finished goods and raw material nor the statements of key persons has been established by cross-examination during the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of any corroborative evidence, is well established. Reference can be made to Hon ble Allahabad High Court decision in the case of Continental Cement Company Vs Union of India 2014 (309) E.L.T. 411 (All.) as also Tribunal s decision in the case of Raipur Forging Pvt. Ltd Vs CCE, Raipur-I 2016 (335) E.L.T. 297 (Tri. Del.), CCE ST, Raipur Vs. P.D. Industries Pvt Ltd 2016 (340) E.L.T. 249 (Tri. Del.) and CCE ST, Ludhiana Vs Anand Founders Engineers 2016 (331) E.L.T. 340 (P H). It stand held in all these judgements 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. 10. Applying t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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