9911796707
TMI Blog2016 (7) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... the officers of DGCEI conducted certain investigations in the premises of M/s. Hanumant Ispat Pvt. Ltd., manufacturer of M.S. Ingots. During the course of investigation, the officers retrieved a pen drive containing various records. It was revealed that the main appellants name was figuring as one of the consignees of 81.210 MTs of M.S. Ingots cleared without payment of duty by M/s. Hanumant Ispat Pvt. Ltd. Such clearance was also admitted by Shri Aggarwal, Director of the said company. The broker, Shri Ramchandra and the transporter also admitted transport of three consignments for the above said total quantity to the main appellants unit. Based on these evidences, proceedings were initiated against the appellants for demanding duty of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants did not come with any details about further disposal of the said ingots and as such, the department is right in alleging clandestine manufacture and thereafter no duty is paid on clearance of M.S. Channels converted from illicitly procured M.S. Ingots. 5. Heard both the sides and examined the appeal records. 6. The present appeals are relating to allegation of clandestine manufacture and clearance of excisable items viz. M.S. Channels. Admittedly, the evidences collected by the Department from third party is with reference to M.S.Ingots purported to have been supplied to the main appellant without proper accounting. All the evidences relied upon in the proceedings before the lower authorities relate only to such supply of 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issible, relating to only for procurement of raw materials alone cannot lead to the conclusion of clandestine manufacture and clearance without some corroboration for these two later stage activities. Duty demand on clandestine clearance covers three stage activities- (a) procurement of raw materials, (b) clandestine manufacture, and (c) clandestine clearance. In the present case, third party evidences are alleged only for the first stage with no evidence for the second and third stage. Inference of clandestine removal has been made. 7. Considering the facts and circumstances of the case as discussed above, the evidences alleged are not sufficient enough to sustain the case of the Department and accordingly, the impugned orders are not sus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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