9911796707
TMI Blog2010 (8) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... moval of chewing tobacco and pan masala. In addition penalties of varying amounts stand imposed upon the other appellants along with confiscation of the goods. 2. After hearing both the sides duly represented by Shri V.S. Sejpal, learned advocate, appearing for the appellants and Shri R.S. Sangia, learned SDR, appearing for the Revenue, we find that as per facts on record M/s. Chetna Zarda Co. is engaged in manufacture of chewing tobacco and pan masala containing tobacco under the brand name Zatpat , 50-50 and Boss falling under Chapters 21 24 of the Schedule to the Central Excise Tariff Act, 1985. The said goods manufactured by them were being cleared to M/s. Kripa Tobacco Marketing, Umbergaon, who were further dispatching the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the products manufactured by M/s. Chetna Zarda Co. and after buying it from them they sell the same to their dealers and customers. He further stated that they have always purchased the goods from M/s. Chetna Zarda Co. on payment of duty under their invoices. 5. Investigations were made at the end of M/s. Chetna Zarda Co. Statement of Haresh Jetania, Partner of M/s. Chetna Zarda Co. recorded on 24-10-2001. He clarified that they sell their entire production to M/s. Kripa Tobacco Marketing on payment of central excise duty. On being questioned about their relationship with M/s. Kripa Tobacco Marketing, he clarified that M/s. Kripa Tobacco Marketing is a separate entity and apart from the business relationship, there is no other relationsh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na Zarda Co., without payment of duty. In fact their statements nowhere deposes that the goods received by them were originally cleared by M/s. Chetna Zarda Co. without payment of duty. The reference is only to the bills issued by M/s. Kripa Tobacco Marketing or the receipt of the goods from M/s. Kripa Tobacco Marketing without any bills and against cash. 9. In the above backdrop, when the Revenue approached M/s. Kripa Tobacco Marketing and recorded the statement of their representative, it was clearly stated that the products received by them from M/s. Chetna Zarda Co. were on invoices and after payment of excise. There is nothing in the statement of Shri Thakkar, Proprietor of M/s. Kripa Tobacco Marketing to reflect upon the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Kripa Tobacco Marketing have in categorical terms stated that the goods stand cleared on payment of duty. It is well settled law that the charges of clandestine removal are required to be established by production of direct and positive evidence and cannot be upheld on the basis of ifs and buts or on the basis of doubt. There being no evidence on record to show that M/s. Chetna Zarda Co. has cleared the products without payment of duty, we find no justification for confirming demand of duty or for imposition of any penalty upon them. Accordingly their appeal is allowed. 12. In as much as the appeal of M/s. Chetna Zarda Co. stands allowed, the confiscation of the goods recovered from the premises of the M/s. Dharmesh Enterprises or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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