2009 (5) TMI 226

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f records of third party. - The Day Book cannot be relied on as the author of its contents could not be identified and his statement obtained. Revenue has not been able to establish receipt of excess amounts against clearances of yarn by the respondents with any reliable evidence. The Commissioner (A) also had found that the Day Book and the records of the broker did not match in entirety. – appeal is dismissed
Ms. Jyoti Balasundaram, Vice-President and Shri P. Karthikeyan, Member (T) Shri V.V. Hariharan, JCDR, for the Appellant. Shri S. Kandasamy, Consultant, for the Respondent. [Order per: P. Karthikeyan, Member (T)]. - This is an appeal filed by the Revenue. Vide the impugned order, the Commissioner allowed the appeal filed by the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ersion of the same obtained. The Commissioner (A) also found that there was no one-to-one co-relation between the entries in the Day Book and the entries in the register maintained by M/s. Kothari Trading Corporation. There was no evidence to indicate that the respondents had received amounts as indicated in the records of M/s. Kothari Trading Corporation. Mere suspicion could not replace the proof required in proving the offence of the type involved. He found that the departmental authorities did not gather evidence to substantiate evasion. As regards the statement of the Managing Director, he found that the deponent had stated that no excess amount had been realized by the respondents as shown in the Day Book. The Commissioner (A) also fo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n to find evasion by the respondents. The Day Book cannot be relied on as the author of its contents could not be identified and his statement obtained. Revenue has not been able to establish receipt of excess amounts against clearances of yarn by the respondents with any reliable evidence. The Commissioner (A) also had found that the Day Book and the records of the broker did not match in entirety. He had found discrepancies in important respects between the entries in the Day Book and the records of the yarn broker. In the decision of the Tribunal in the case of Rhino Rubbers Pvt. Ltd., it was held that third party's records were not reliable when no direct links could be established between the records and offending transactions. In the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X