2016 (7) TMI 495

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..... oner (Appeals) observed that the admitted facts need not be proved. Here, it has to be noted that there is no admission by the appellants regarding procurement, manufacture or clearance of any excisable items. Applying an admission of third party to demand duty from the appellant without any corroboration of manufacture and clearance will not be legally justifiable. In fact, the impugned orders admit that the Department was not in a position to investigate the case at the buyers end of the appellants as details were not disclosed by the appellants. Since the appellants are denying any such clearance, it is for the Department to adduce evidence of clandestine manufacture and clearance. The evidences alleged are not sufficient enough to s .....

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..... o have been manufactured using the clandestinely received 81.210 MTs of M.S. Ingots from the above source. The Original Authority confirmed the demand and imposed equal amount of penalty on the main appellant and further penalty of ₹ 2,00,000/- on Shri Shankar Nachrani, the second appellant in this case. The goods were ordered to be confiscated and allowed for redemption on payment of a fine of ₹ 3,00,000/-. On appeal, the Commissioner (Appeals) upheld the order except for setting aside the confiscation and redemption fine. The present appeals are directed against the Commissioner (Appeals) s orders. 3. Ld. Counsel for the appellants submitted that the whole case is built-up on the basis of details collected from the third pa .....

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..... nied a receipt of the said ingots in the statement given before the officers. Admittedly, the clandestine manufacture and non-duty paid clearance of M.S. Channels have been inferred from the evidences collected for supply of raw materials from third party. While there is a basis to proceed with further investigation to establish clandestine manufacture and clearance, the case is not complete as no element of evidence has been unearthened which can even indirectly indicate clandestine manufacture and clearance thereafter without payment of duty on M.S. Channels. Even the quantum of un-accounted clearance of M.S. Channels is arrived at by derivative calculation based on comparable figures for a particular month. Ld. Commissioner (Appeals) obs .....

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