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TMI Blog2015 (4) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant. The statement recorded from shift supervisors being self speaking cannot be brushed aside because they were the persons within whose knowledge goods were manufactured and cleared. Their evidence was believable, cogent and credible for the reason that they vividly described methodology of production. - Preponderance of probability was against the appellant. Pleading of no statement recorded from buyer, no excess electricity consumption found, no raw material purchase found unaccounted and no input output ratio prescribed by law is of no use to it. Revenue discharged its onus of proof bringing out the allegation in the show-cause notice succinctly. But, the appellant miserably failed to discharge its burden of proof. It did not come out with clean hands.- It is not only one evidence, but multiple echoed evidence demonstrated oblique motive of the appellant and proved its malafide. Therefore, appellant fails on all counts. Revenue s investigating was successful and its suffering was established. Without human intervention evasion does not occur by an artificial person which is a company - Thus burden of Revenue was considerably lightened by preponderance of probabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Satyanarayan Kunthia recorded on 04.10.2006 revealed that either he or his colleagues had written the registers and 1 tonne of Iron Ore was resulting in manufacture giving rise to Sponge iron to the extent of 56%. They found the input and output ratio. Statement of Shri Adeh Dongare, another shift supervisor record on 17.04.2007 revealed consumption of raw material which was worked out on the basis of feed rate as well as dip of the bunker. Scrutiny revealed that the appellant-Company had suppressed production of 1580.950 MT of Sponge iron. (iv) Scrutiny of the record mentioned at s.no.22 of the Annexure to the panchnama dated 04.10.2006 which was pencil handwritten ledger revealed that the said ledger contained sale account of Sponge iron indicating the truck number and the payment receipt. When the entries therein were compared with Central Excise invoices issued by appellant-Company it came to the notice that in large number of cases entries in the ledger did not corroborate with Central Excise invoice. Accordingly, the ledger was photocopied and authenticated by the appellant-Company and were taken into custody by the team for scrutiny. Scrutiny thereof revealed that the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds without payment of duty. 6. The records seized from the various business premises of the appellant-Company and others revealed that the Company had removed 1574.725 MT of Sponge iron valued at ₹ 1,57,27,368/- involving Central Excise duty of ₹ 25,16,375/- and education cess of ₹ 50,330/- and 81.010 MT of Dolochar valued at ₹ 4051/- evading Central Excise duty of ₹ 649/- and education cess of ₹ 13/- suppressing production of goods. Such goods were clandestinely removed with intent to evade payment of duty. However, the Appellant-Company deposited basic excise duty amounting to ₹ 21,59,770/- and education cess of ₹ 43,195/- prior to adjudication. 7.1 Learned counsel Ms. Surabhi Sinha at the outset submitted that the adjudication order is nothing but a replica of the show-cause notice and what that was reported by investigation was simply endorsed by the adjudicating authority without testing the veracity thereof. The statement recorded from Shift Supervisor is not admissible in evidence because they are incompetent to give such statement. Presumption of arise of 56% of output from an unit of input has no sanction in law for whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that on four counts, the demand arose. The first count is that physical inventory proved shortage of 2.580 MTs of Sponge Iron which was admitted. That pointed out that the lose sheet recovered in the course of search unerringly proved unaccounted clearance of 562.130 MTs of Sponge Iron and 81.010 MTs of Dolochar. Secondly, the pencil written ledger (Sl. No. 24 of Panchanama dated 4.10.2006) proved unaccounted sales of Sponge Iron with full details of truck number and payment receipts. That corroborated with majority of entries in the excise record and invoices and unrecorded transactions gave raise to demand against 887.560 MT of Sponge Iron escaping duty liability being sold without any invoice. Thirdly, the materials recovered from premises of M/s. Purwanchal Road Carriers proved that there was an admitted clearance of 69.180 MT of Sponge Iron without issuance of central excise invoice. Fourthly, records recovered from M/s. Giriraj Roadlines proved unaccounted clearance of 55.855 MT of Sponge Iron. 8.2 According to Revenue, entire unaccounted clearances were corroborated from the materials recovered from the premises of Sri Kailash Agarwal who was commission agent of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of allegation in respect of removal of 887.560 MT of Sponge Iron without payment of excise duty. Similarly, the loose sheets when evaluated, that proved removal of excisable goods without payment of duty to the extent of aforesaid quantity of goods. 10.2 The statement recorded from shift supervisors being self speaking cannot be brushed aside because they were the persons within whose knowledge goods were manufactured and cleared. Their evidence was believable, cogent and credible for the reason that they vividly described methodology of production. 10.3 Added to the above, the director admitted clandestine removal of the goods not supported by excise invoices. That resulted in loss of revenue. He therefore admitted to make payment of the duty evaded without controverting the Revenue implication of the entries in pencil handwritten ledger and chits recovered from possession of appellant during search. Entire pleading of the appellant therefore failed to sustain when malafide of the appellant came to record. Clandestine removal was well within the knowledge of the shift supervisors, accountant, Director, transporters and commission agent. Each other s evidence corroborated all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so. Unless nipped in the bud at the earliest, it is likely to cause turbulence shaking of the socio-economic-political system in an otherwise healthy, wealthy, effective and vibrant society and ultimately, such excise duty or the tax evaders can create a parallel economy in the state which may pose a serious threat to the nation. In the present State of affairs, the economic offences are undoubtedly more grave in nature than those offences which are otherwise said to be grave. Revenue need not prove its case with mathematical precision. Evasion occurs under the concealed mind of the evader who brings out entire story of evasion only when investigation interrogates him. The concealed evasion when discovered, that brings out the modus operandi followed, to light. Therefore, appellant s reliance on various decision would be of academic interest since Revenue need not prove its successful investigation bringing out plethora of evidence. What it requires is to bring out the materials pointing out the evaders conduct. Preponderance of probability favoured case of Revenue. Therefore, on the aforesaid facts and circumstances and analysis of evaluation of evidence appeal of the appellant-c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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