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TMI Blog2012 (10) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... health, the proceedings lasted till 11 hours in the evening and on being told that there was shortages of raw materials, he simplicitor agreed to debit the duty. Learned advocate submits that such statement cannot be held to be of any evidentiary value, in the absence of any evidence to reflect upon the clandestine clearance of raw materials. As no evidence on record indicating any removal of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 5.5.2010 and on physical verification of raw materials, shortages in the stock of carbon black and synthetic rubber was detected. The total value of such shortages was to the tune of Rs. 16 lakhs involving Cenvat credit of Rs.1,65,303/-. The statement of Shri M.L. Dhawan, Managing Director was recorded on the spot who detected the shortages and agreeing to pay the duty by debiting the same in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the reply to the show cause notice referred to the opening balance in RG 23 A Part II as also the quantity of carbon black and synthetic rubber on 1.5.2010 and 3.5.2010 and material sent for job work on 4.5.2010 under the cover of challans No. 117 and 118 as also to the material issued for captive use on 3rd, 4th and 5th May, 2010. A part of the fallen quantity of carbon black and synthetic rubb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax authorities sought to rely upon the statement of Director given at the time of search of the factory. While examining the evidentiary value of the said statement in the absence of any other evidence, the Hon ble High Court observed that it is settled law that though the admission is extremely important piece of evidence, it cannot be said to be conclusive and it is open to the person w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence on record indicating any removal of raw materials by the appellant, or their use in the manufacture of final product which does not stand reflected in the statutory records, I find no reasons to uphold impugned orders of the lower authorities. The same are accordingly, set aside and appeal is allowed with consequential relief. (Pronounced in the open court on 12.9.2012) - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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