9911796707
TMI Blog2016 (3) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Department. On 16-1-2013, the search was conducted at the premises of the M/s. Shraddha Traders at Raipur wherein various branded cigarettes were recovered without cover of invoice, one of the brand namely Royal Black Clove relating to M/s. Rudra Venture Pvt. Ltd. was also found thereafter, statement of one agent namely Sh. Samay Lal Janghel was recorded who stated that he is procuring that cigarettes from the stockist located in Delhi and supplying the same to Raipur. The statement of Sh. Ravi Singhal Authorised signatory of M/s. Pankaj Logistics was also recorded who stated that he is supplying cigarettes booked by their Delhi office for delivery at Raipur and manufactured by units located at Nakodar which belongs to IJM Group o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be demanded from the appellant. However, to prove the charge of clandestine removal of goods, nothing has come on the record from where the raw material was procured, whether any extra electricity was consumed, how the goods were transported, whether there was flow back money to the appellant or not. In the absence of these evidence, the duty on the basis of third party statement cannot be demanded from the appellant. He also relied on decision of this Tribunal in the case of Musk Tobacco (India) Pvt. Ltd. v. CCE - 2013 (289) E.L.T. 161 (Tri.-Del.) and Shrigonda Sahakari Sakhar Karkhana Ltd. v. CCE - 2011 (269) E.L.T. 425 (Tri.-Mum.). 4. On the other hand, the ld. AR reiterated the finding in the impugned order. 5. Heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom a trader, it is alleged that the goods have been cleared by the appellant clandestinely. In the absence of evidences namely procurement of raw material, the manufacturing process, flow back of money, mode of transportation, the said allegation is not sustainable. As all the evidence to alleged clandestine removal are absent from the investigation, in that circumstances, allegation of clandestine removal of goods is set aside in the light of the decision of this Tribunal in Musk Tobacco (India) Pvt. Ltd. (supra) wherein Para 4 of the said order : 4. Above in factual position as is apparent from orders of both the lower authorities below. Revenue certainly would have been benefited had they found evidence in respect of removal of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no corroborative evidence to support its case. Since molasses is a controlled item, both under the Central Excise law and also under the State Excise laws, there cannot be any clandestine production and removal without the same being noticed by the State excise authorities. As rightly contended by the assessee, no case has been made against them by the State excise authorities who issued transport permits for the assessee to remove molasses to their distillery. The least that the department could have done in this case is to cross check with the State excise authorities and the records maintained by them to satisfy, whether, indeed, there has been production and clearance of the molasses to the extent of 12539.300 MTs as made out in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State excise authorities have a physical control and special supervision staff are posted in the factory and distillery unit to safeguard the case of State excise revenue on molasses and allied products. The State excise authorities, in this case, have not made any allegation of shortage of molasses or any unaccounted production of molasses. In view of this position, when there is a physical control of the department of State excise and also records based control by the Central Excise authorities there cannot be any allegation of clandestine removal of goods without substantive evidence as has been held in the case of LML Limited v. Commissioner of Central Excise (supra). It is also a well-settled position of law that in the case of clande ..... X X X X Extracts X X X X X X X X Extracts X X X X
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