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TMI Blog2001 (9) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... hout payment of Central Excise duty. This amount is arrived at based on certain details contained in the exercise note recovered from the factory at the time of search. (ii) An amount of Rs. 68,35,193/- being the duty alleged to have been not paid on 3597.470 MTs cleared from the factory without payment of Central Excise duty. This amount is arrived at basing on the following documents : (i) Confidential file. (ii) Selective operational date returns submitted to Banks. (iii) Balance Sheets for 1990-91 and 1991-92. (iv) Consortium Meeting file. With reference to the first demand mentioned above, assessee has claimed that the duty has been demanded based on the figures given in the exercise note book and that the figure given therein are only the orders received for execution and not the orders executed. This argument of the assessee cannot be accepted. The data given in the note book clearly indicates the details of sales such as the number of tins, price fixed and in some cases details of the truck by which the goods are sent. In spite of having all these details the assessee is trying to take shelter on the ground that the department has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... containing unauthenticated entries. 3. 2001 (130) E.L.T. 719 (T), Kolkata Brims Products v. Commr. of C.E., Panta Clandestine removal - Evidence-Standard of-No positive evidence to establish clandestine removal adduced by department - Quantity alleged removal calculated on basis of transport company s records based on presumptions and assumptions not sustainable. [Para 3] 1. Gurpreet Rubber Industries, 1996 (82) E.L.T. 347 (T) = 1996 (63) ECR 68 (T) Clandestine production and removal not proved by any evidence such as installed capacity purchase utilisation of raw materials labour employed, power consumed, etc., demand set aside. 2. Ambica Metal Works, ECR VOL. 29 Para 549 Evasion of duty must be based on solid and acceptable evidence. 3. Kishand Co. Oil Industries Ltd., 1996 (82) E.L.T. 210 Clandestine removal of v.p. cannot be based on i.t. assessment order. 4. Punjab Oil Silicate Mills, 1993 (65) E.L.T. 268 (T) Allotment of coal, affidavits were filed before dept of industries - Cannot be relied without any corroborative evidence - Clandestine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other evidence brought on record. Allegation not established. 2. 2000 (121) E.L.T. 46 (T) = RLT 41 P. 348 CCE., Meerut v. Raman Ispat [Paras 7, 8 9] Evidence note book showing production of steel ingots receipt and consumption of raw materials/scrap no investigation done with person who made the entries. No investigation with traders who returned the scrap - Clandestine removal not established. 3. 2000 (36) RLT 211 (Tribunal) Kirthibai Maganbai Patel v. CCE., Nagpur [Para 4] Private register not sufficient to prove clandestine removal. 4. 2000 (120) E.L.T. 505 (T) K.J. Diesels (P) Ltd. v. CCE., Kanpur [Para 3] Difference in rg 1 closing stock and monthly statement alone is not sufficient to a duty demand on alleged clandestine removal in the absence of any corroborating evidence. 5. 2000 (116) E.L.T. 618 (T) = 1999 (34) RLT 662 (CEGAT) Grauer Weil (India) Ltd. v. CCE, Meerut Circumstantial evidence not sufficient to establish clandestine removal - More positive evidence is necessary to sustain charge. 6. 1999 (114) E.L.T. 537 (T) = RLT 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is required to be dismissed for the simple reason that revenue is seeking confirmation of the portion of the order by which the Commissioner has dropped the proceedings for lack of evidence. The relevant portion of the order dropping the proceedings are produced herein below :- I have carefully gone through the entire records of the case. The department s only strong point on which demand is made is that there are certain records/returns submitted to the banks, which indicate a higher production/clearance figures. On careful examination, I find that the department has not investigated the following aspects : (i) To find out further above the production details. (ii) To find out further whether raw materials have been purchased as reflected in the relied upon documents, or not. (iii) To find out the dispatch particulars from the lorry booking offices/regular transporters. (iv) To find out about the realisation of sale proceeds. (v) To find out about the power generation from generator. (vi) To find out finished product receipt details from regular dealers. Gist of some of the case laws relied upon is reproduced below. CEGAT in the case of Pun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... These figures tallied with those found in the confidential file. (3) Consortium Meeting file which is a correspondence file with bank for working capital and contained the production and clearance figures. (4) Balance sheet for the years 1990-91 and 1991-92 whose figures tallied with those shown in confidential file and select data returns submitted. (B) It is evidence from the three sets of private records and balance sheets for the year 1990-91 and 1991-92 that the figures in each of the private records had tallied with each of the other records. Same production and clearance figures being present in 4 sets of records gives the strength of corroborative evidence. These records clearly show that more clearances were effected than what was shown in the statutory record i.e. RG-1 register. Hence the veracity of private records need not be doubted and the figures taken from the private records appear to be having the strength of corroborative evidence and hence the demand of Rs. 68,35,193/- made on the basis of figures shown by private records requires to be confirmed. As this demand is dropped, the order appears to be not proper to this extent. 6. We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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