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TMI Blog2012 (11) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... n loose papers S.No. 112 to 115 which revealed clearance of 255 consignments of 2740 MT of Cement during the month of February. When such clearances were compared with admitted clearances in the statutory records, it was found that the same was not reflected therein. Statement of the appellant s representative as also their Director was recorded, wherein they admitted the shortage of raw materials as also clearances of their final product to various parties against cash, without payment of duty. 2. On the above basis, proceedings were initiated against the appellant resulting in confirmation of demand of Rs.6,57,600/- on the clandestinely cleared cement as also for denial of Cenvat credit of Rs. 90,626/- in respect of 362.502 MT of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s lying vacant which has been given on rental basis to various stockers of maurang and concrete. The said private documents might have been left over by the said private parties who are selling maurang and concrete on sq.ft basis. Inasmuch as the clinker is procured from the manufacturer and used as 95% of raw material, the procurement of same from outside State without a valid trade tax form 31 is impossible. They also relied upon various decisions to submit that strong suspicion, strange coincidence and grave doubts cannot take place of legal proof. To establish charges of clandestine removal, it is essential for the prosecution to establish that the secret books of accounts relates to the business transaction carried out by the party. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the show cause notice. Ongoing through the said loose documents, I find that there is no indication to show that the same belonged to cement. Revenue has taken into consideration the statement of Director, which is to the effect that number of bags, figures reflected in the said loose papers relate to the cement which stand cleared by them clandestinely. 9. The issue required to be decided is as to whether the said statement alone can be made the basis for arriving at the finding of clandestine removal. What is evidentiary value of the said statement, in the absence of other corroborative evidence on record. The Hon'ble Delhi High Court in a recent judgement in the case of Commissioner of Income Tax vs. Dhingra Metal Work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Revenue, they have made no efforts to go to the transporters, truck drivers etc. and to the buyers to arrive at the truth. Majority decision in the case of Tejal Dyestuff Industries as reported in [2007 (216) ELT 310 (Tri)] Tribunal held that the Revenue cannot make its case on the basis of statement alone in the absence of any independent evidence to corroborate the same. The said decision was confirmed by Hon'ble High Court of Gujarat as reported in 2009 (234) E.L.T. 242 (Guj.), when the appeal filed by the Revenue was dismissed. Further, Tribunal in the case of CCE v. Luxmi Engineering Works as reported in 2001 (134) E.L.T. 811 (Tri.-Del.), has held that there being no corroborating evidence in the form of receipt of raw materia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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