TMI Blog2023 (3) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... erial and scrap was accounted for obviously the same would be cleared on payment of duty. In this fact the department s case is of no basis that goods might have been cleared clandestinely. Moreover except relying on the IT Search the revenue has not independently investigated the case, no evidence of clandestine manufacture and removal and transportation of the goods was investigated or brought on record. Therefore, merely, on this IT Search demand cannot be confirmed. The department has demanded duty assuming that goods have been cleared clandestinely is without any basis. Even, the accounting made by the appellant on the instance of IT Search does not show that the goods have been cleared clandestinely. The difference which was pointe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 726 of 2012 - Final Order No. A/10408-10409/2023 - Dated:- 6-3-2023 - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. RAJU, MEMBER (TECHNICAL) Shri Saurabh Dixit, Advocate for the Appellant Shri. G. Kirupanandan, Superintendent (AR) for the Respondent ORDER The brief facts of the case are that the appellant is engaged in the manufacture of excisable goods such as steel, Structural material falling under chapter heading 73 of Central Excise Tariff Act, 1984. Certain search was conducted by the income tax department in the premises of the appellant wherein the appellant accepted certain variation in raw material scrap and stock value that while the appellant was in the process of finalizing their accounts. Certain working pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods have been manufactured and cleared clandestinely whereas no independent evidence was brought on record. He submits that the working of demand is on the hypothetical and presumptive basis. Regarding raw material being used to produce finished goods and scrap being found as per private records. Therefore, on this basis the demand cannot be sustained. He further submits that it may be appreciated that considering the volume of the material dealt with by the appellant till date of IT search the 945 tons of the raw material stock and 310 tons of Scrap is hardly 0.6 % ( for raw material) and 0.21% (of scrap) respectively of the total material received by them which difference is too negligible as compared to the volume of the work undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared clandestinely. Moreover except relying on the IT Search the revenue has not independently investigated the case, no evidence of clandestine manufacture and removal and transportation of the goods was investigated or brought on record. Therefore, merely, on this IT Search demand cannot be confirmed. When the appellant have recorded the raw material and scrap as per the IT investigation, it means certain stock was lying unaccounted which stood accounted for by making proper entries in the records. In such case, there cannot be any case of clandestine removal. The department has demanded duty assuming that goods have been cleared clandestinely is without any basis. Even, the accounting made by the appellant on the instance of IT Search ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ason to hold that surrendered income was on account of clandestine manufacturing activity. 4.3 In absolutely identical facts of the present case in the case of SAINI INDUSTRIES LTD (Supra) this Tribunal has held that even though stock verification received from Income Tax Department but nothing on record that assessee had actually manufactured and removed the goods clandestinely . The stock verification done of Income Tax Authorities cannot be accepted on its face value in view of doubts raised by assessee and in the absence of corroborative evidence, hence, no duty of excise can be confirmed. 4.4 In the case of CHETAK MARMO PVT. LTD.(Supra) this tribunal held that it is a well settled law that clandestine removal ought to be establis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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