TMI Blog2019 (7) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ny corroborative evidence. Cross-examination of statements of witnesses - Principles of natural justice - HELD THAT:- The two buyers were examined by the revenue with regard to the clandestine clearance of the goods, therefore, Shri Ajay Jain of M/s Ajar Amar Steel denied that they have not received any goods without invoices. Revenue has failed to appreciate the said statement of Shri Ajay Jain, but Shri Kamal Chopra has admitted that they have purchased a meagre quantity of 249.985 Mts of steel ingots, but the appellant sought cross examination of Shri Kamal Chopra, the same was denied - In terms of Section 9-D of Central Excise Act, 1944, the adjudicating authority is required to examine in chief of the witness of the statements have been relied and thereafter to make up his mind that the statement made by the witness is correct and thereafter to offer cross examination of the said witness to the appellants. The said procedure has not been followed, therefore, there is a gross violation of principal of natural justice. As the revenue has failed to come with tangible evidence to allege the clandestine manufacture and removal of goods, therefore, the impugned order is set as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho were visiting the said office belonging to his father. Sh. Ajay Jain, partner of M/s. Ajar Amar Steels also denied having received any ingots from M/s Waryam on the basis of the said loose slips. Sh. Kamal Chopra, authorized signatory of M/s. V.G. Steel Industries, admitted to have purchased a total quantity of 249.985 MTs from M/s Waryam without invoices. On the basis of the these evidences, it was alleged that wighment slips pertaining to M/s. Ajar Amar Steels, S.S. Lota Dharm Kanda etc. Some of the weighment shown in the dharma kanda were tallying with the statutory records of M/s Waryam whereas numerous weighment slips contained rate and value of ingots which were not entered in the statutory records of M/s Waryam meaning thereby that the said quantity was cleared clandestinely by M/s Waryam. On the basis of this, the show cause notice dated 17.06.2009 was issued for the period 08.05.2007 to 14.12.2007 and demands proposed in the show cause notice were confirmed by the Ld. Commissioner. Therefore, the duty was demanded by confirming the charge of clandestine removal by M/s Waryam. Consequently, the duty was demanded alongwith interest and penalties were also imposed on all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in the case of G. Tech Industries Vs. Union of India 2016(339) ELT 209 (P H), Hi Tech Abresives Ltd Vs. CCE, Raipur 2018 (362) ELT 961 (Chh) and CCE, Delhi-1 Vs. Kubber Tobacco India Ltd. 2016 (338) ELT 114 (Tri-Del), therefore, the statement of Shri Kamal Chopra cannot be relied upon. 5. He further submitted that weighment slips and other records were not seized from the premises of M/s Waryam, therefore, no reliance can be placed thereon. It is a well settled law that any documents recovered from a third party premises cannot have any evidentiary value unless the same are corroborated by independent evidence. To support this contention, he relied on the decision of this tribunal in the case of Tejwal Dyestuff Industries vs. Commissioner of Central Excise, Ahmedabad 2007 (216) ELT 310 (Tri.-Ahmd.) the said order has been affirmed by the Hon ble Gujarat High Court reported in 2009 234 ELT 242 (Guj.). He further submitted that the revenue has failed to establish that how the raw materials have been received inside the factory to manufacture the said goods which has been alleged clandestinely manufactured and cleared. Revenue has failed to establis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (b) Whether these goods have been manufactured and cleared by the respondent (c) Whether the excess electricity has been consumed by the manufacturer to manufacture the goods. (d) How the excess goods manufactured were transported and whether the transporters statement have been taken on record or not ? (e) Whether these goods have been weighed and weighbridges owners statement have been cross examined to ascertain how much quantity have been received for weighment. 7. In the absence of above elements, the charge of clandestine manufacture and removal of the goods is not sustainable in the eyes of law. The Revenue has not taken pain to investigate Dharamkanda owners or transporters to establish whether the goods have been weighed or transported. In the absence of any cogent evidence, particularly the buyers of the goods denied the receipt of the goods, the demand against the respondent namely, M/s.Vee Kay Concast Pvt.Ltd. is not sustainable, therefore, benefit doubt goes in favour of the respondents accordingly, the corresponding penalties imposed on the respondents are not sustainable. 8. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and activities of the assesses are required to be proved by relevant and creditable material . Admittedly, in the present case the documents stand recovered from the third party premises and has not been established by the Revenue to have any link with the appellant s activities and as such cannot be relied upon. 10. We further take a note of the fact that the two buyers were examined by the revenue with regard to the clandestine clearance of the goods, therefore, Shri Ajay Jain of M/s Ajar Amar Steel denied that they have not received any goods without invoices. Revenue has failed to appreciate the said statement of Shri Ajay Jain, but Shri Kamal Chopra has admitted that they have purchased a meagre quantity of 249.985 Mts of steel ingots, but the appellant sought cross examination of Shri Kamal Chopra, the same was denied. In terms of Section 9-D of Central Excise Act, 1944, the adjudicating authority is required to examine in chief of the witness of the statements have been relied and thereafter to make up his mind that the statement made by the witness is correct and thereafter to offer cross examination of the said witness to the appellants. The sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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