2007 (2) TMI 407 - AT - Central Excise

Summary

Issues involved: Alleged clandestine removal of goods without proper accounting in Central Excise statutory records.

Summary:

Issue 1: Alleged clandestine removal of goods
The respondents were engaged in manufacturing decorative laminated sheets and industrial laminated sheets. During a search at their factory, a rough private register and note pad were found, indicating production of laminated sheets not accounted for in Central Excise records. Statements of production supervisor and director suggested awareness of the register but did not clearly admit to clandestine removal. Proceedings were initiated for recovery of duty, resulting in an Order-in-Original confirming demand and imposing penalties. On appeal, the Commissioner (Appeals) set aside the order, stating that clandestine clearance requires concrete evidence beyond doubts, which was lacking in this case.

Decision:
The Tribunal found that the Revenue's case was solely based on entries in the private register and note book, which did not conclusively prove clandestine removal. The statements of the production supervisor and director did not provide strong evidence of wrongdoing. The director's mention of the possibility of goods being cleared without duty payment was not a clear admission. The Tribunal agreed with the Commissioner (Appeals) that without tangible evidence, allegations of clandestine removal cannot be upheld. Therefore, the appeal filed by the Revenue was rejected.