2005 (9) TMI 526

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..... r per : C.N.B. Nair, Member (T)]. The first appellant is a manufacturer of Carbon Electrode Paste. The impugned order has demanded excise duty of about Rs. 30 lakhs from it, along with equal amount of penalty. The other appellants are company s officials upon whom, penalties of varying amounts have been imposed. The duty demand and penalties flow from a finding that the appellant clandestine .....

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..... ed records contemporaneously kept by the appellants would clearly correlate the weighment slips to specific goods. It is being pointed out that 94 slips relate to transport of inputs. This claim of the appellant is in line with supporting evidence in the nature of GR-forms issued by Transport Company, the appellant s raw material register and other records. The remaining 7 slips relate to transpor .....

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..... weighment slips by themselves would not be sufficient evidence for establishing a case of clandestine removal. 5. Learned SDR has submitted that when the weighment slips were recovered by the officers, they had asked the factory officers to correlate them to the goods transported. However, they were able to correlate only 198 out of 299 weighment slips recovered. It is the learned SDR s content .....

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..... hat wherever the particulars mentioned in the weighment slips relate to removal of finished products manufactured by the appellant, there are invoices evidencing such removals as well payment of duty. Similarly, the appellant s explanation relating to receipt of inputs is also supported by the other evidence. The GR-forms in question mention the goods transported and those goods are the inputs for .....

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..... de Paste. 7. In view of what is stated above, we find that the evidence on record only supports the appellant s explanation and in no way supports the finding that manufactured goods have been clandestinely removed. The demand and penalties are not justified by the facts and circumstances of the case. They are set aside and the appeals are allowed with consequential relief, if any, to the appell .....

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