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TMI Blog2017 (9) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... ed raw material in clandestine manner to manufacture of the goods. That is based on the documents recovered from the residential premises of the appellants. Those documents does not pertain to the period in dispute and no other evidence is available on record for procurement of the said raw material clandestinely. Therefore, in the absence of any corroborative evidence, the documents recovered from the residential premises cannot be the basis to allege manufacture and clandestinely removal of goods. Further, the documents recovered from the residential premises does not form part of the relied upon documents, therefore the said documents cannot be relied upon - the charge of clandestine removal of goods is not sustainable - penaltyv also set aside. Confiscation of the Indian currency - Held that: - no documents has been placed on record that the said Indian currency is the sale proceeds of clandestine manufacture and removal of goods, therefore, the Indian currency recovered from the premises of Shri Ish Kumar is not liable for confiscation. Confiscation of finished goods which were not recorded in their stock - Held that: - it is an admitted fact on record that the goods wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scate the cash recovered from the residence of the appellants. The matter was adjudicated. Demand of duty on account of clandestine removal of goods was confirmed, the goods not entered in the records were held liable for confiscation, redemption fine and penalty was imposed and cash seized was confiscated absolutely. Aggrieved from the said order, the appellants are before me. 3. The ld. Counsel for the appellants submits that no adverse inference can be drawn from Kucha slips recovered and seized from M/s Kalka Marketing Pvt. Ltd. He also submits that there is no admission by Shri Harish Kumar Setia, Director of M/s EEPL about the stock bearing in kucha slips recovered from M/s Kalka Enterprises Pvt. Ltd. have been clandestinely manufactured and cleared. Even kucha slips were neither on record nor even investigated. He also submits that kucha slips recovered from M/s Kalka Marketing Pvt. Ltd. even otherwise cannot have any connection with the appellants. He also submits that kucha slips recovered from M/s Kalka Marketing Pvt. Lrd. even otherwise cannot be considered the removal of goods from the factory of the appellants as no evidence has been brought on record for removal th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statement of co-notice cannot be taken an evidence in the light of decision of Hon ble Punjab Haryana High Court in the case of Assistant Collector, Customs Vs. Amrik Singh - 2014 (309) ELT 170 (P H). 6. On the other hand, ld. AR reiterated the findings given in the impugned order and submits that the kucha slips recovered from Kalka Marketing Pvt. Ltd. clearly shows that they were procured the goods from M/s EEPL. The appellants cleared goods without dutiable invoices had paying the payment thereof in cash. Moreover, the documents recovered from the residential premises of the appellant clearly shows that the raw material has been procured by the appellant for manufacture of goods which has been cleared clandestinely. Moreover, the various statements recorded during the course of investigation corroborate the allegation against the appellant. He further submits that the seized goods were lying in their factory were in packed condition and same has not been recorded in the statutory records which leads that the appellant deliberately did not enter in statutory records for clandestine removal. With regard to the cash recovered from the residential premises of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 108 of Customs Act. 9. Further the kucha slips recovered from M/s Kalka Marketing Pvt. Ltd. have no description of the supplier of the goods. Moreover, to allege clandestine removal of goods, the evidence are required to be in the form of procurement of raw material/manufacturing capacity. Moreover transportation and how the said payment of goods received. How the goods were cleared after manufacturing, no efforts were made to allege that the goods have been manufactured clandestinely and cleared thereof. No statement of the workers or any staff of the appellant has been recorded. The statement of Shri Harish Setia, Director is exculpatory. Therefore, no adverse inference can be drawn on the basis the kucha slips recovered from M/s Kalka Marketing Pvt. Ltd. There is no evidence on record how the goods were removed from the factory of the appellant. Moreover, the statement of M/s Vandana Enterprises is on record to show that they have cleared the goods to M/s Kalka Marketing Pvt. Ltd. and the said statements were also retracted. It is also a fact on record that M/s Kalka Marketing Pvt. Ltd. is a trader and Vandana Enteprises are also a trader. It is also a fact on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord that the goods worth ₹ 10,76,721/- were lying in the factory in finished condition and have not been recorded in statutory records. Therefore, the said goods are liable for confiscation. In that circumstances, I held the goods valued at ₹ 10,76,721/- which were not entered in statutory records are confiscated correctly. In that circumstances, I hold that the redemption fine of the appellant M/s EEPL is imposable. Considering the redemption fine imposed on the appellant on higher side, therefore, the same is reduced to Rs. One lakh. Consequently, the penalty is also confirmed on the charge of confiscation EEPL of ₹ 1,72,275/- is on higher side. Therefore, the same is reduced to ₹ 50,000/-. 13. In view of the above analysis, the following order has passed : (a) No demand is sustainable on account of clandestine removal of goods consequently, no penalty is imposable on the appellants. (b) The Indian currency seized is not liable for confiscation therefore, the same is required to be released immediately. (c) The goods worth ₹ 10,76,721/- are held for confiscation consequently redemption fine and penalty are reduced to ₹ 1,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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