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TMI Blog2017 (9) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... al is not factually correct. The reference to the unaccounted raw material is only with an intention to corroborate the allegation and charge of clandestine manufacture and removal of the final product. Even though, the charges of clandestine removal are required to be established by the Revenue by production of, sufficient tangible evidences but the acceptance of such evidences, depends upon the facts of each and every case. In my view, the appellant having not challenged and contested the entries made in the private records which stand corroborated by the recipient of the goods along with fact of findings of unaccounted excess raw materials inspire confidence in the Revenue's case - duty demand upheld. Penalties - Held that: - the same are on the lower side and require no interference by the Tribunal. Similarly, penalty imposed upon Shri Ashok Saraf is proper and appropriate inasmuch as, the entire evidences on record lead to the factum of involvement of the Managing Director in such clandestine activities of the manufacturing Unit. Appeal dismissed - decided against appellant. - E/00395,00396/2006 - Final Order No. 41142-41143/2017 - Dated:- 6-7-2017 - Smt. Archana W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement of Shri Ashok Saraf was subsequently retracted by him vide his letter dated 15.11.1990 but the said Shri Ashok Saraf again on 21.11.1990 deposed that the said retraction may not be taken cognizance of and he agrees with the statement made by his clerk Shri V. Suresh and also with the statement of the Quality Controller Shri Jacbo Raja of M/s. Sree Ganesh Steel Rolling Mills to whom the clandestinely removed goods were supplied. 3.1 During the course of investigation, statement of Shri R.S. Mishra, Supervisor of the said appellant as also of Shri Sadasivam Pillai, Security Officer was recorded, wherein, they admitted to have cleared the goods mentioned in the said Private Gate Passes as also in the Outgoing Material Register, without payment of duty. It was also seen that during the year 1988-89 and 1990-91, the appellant had received a sizeable quantity of raw material i.e., Waste and Scrap, which was not entered in the statutory records. 4. Based upon the evidences collected by Revenue, proceedings were initiated against the appellants by way of issuance of show-cause notice dated 03.09.1991, alleging clandestine removals with a proposal to confirm the demand of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted their contentions of removal of scrap as such and double entries, the confirmation of demand on the said ground is not justified. He also submits that the Commissioner, instead of looking into the cumulative differences of the scrap quantity as explained by the appellant, has observed that if year-wise details are examined there is a huge unexplained receipt of raw materials. Accordingly, he prays that the appellant having explained the usage of the entire unaccounted raw material alleged to have been received by them, the adjudicating authority was not justified in confirming the demand on the findings of clandestine manufacture and removed of their final products. He, accordingly, prays for the setting aside the impugned order. 6. Learned Shri R. Subramaniyan, AC (AR) appearing for the Revenue has drawn my attention to the detailed findings given by the Commissioner and submits that the Revenue's case is not based only on unaccounted receipt of raw material but the adjudicating authority has primarily gone by the Private Gate Passes and entries made by the appellant in the Outgoing Material Register . The said details contain all the relevant facts such as da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference to the unaccounted raw material is only with an intention to corroborate the allegation and charge of clandestine manufacture and removal of the final product. On going through the order, I find that the findings of the adjudicating authority are based upon the entries in the private records and not on the basis of the excess raw, materials. As such, the explanation rendered by the appellant in respect of such excess raw materials is of no consequence as long as the appellant have not explained the entries made in the Private Gate Passes and Outgoing Material Register . The adjudicating has rightly observed that the appellant has neither disowned the said entries nor have uttered a word against the same in the reply to the show-cause notice, either at the stage of original adjudication or during the appellate proceedings. The fact that Shri Ashok Saraf admitted the said entries along the admission of Supervisor responsible for preparing the Private Gate Passes along with the fact that w/o stand explained as without payment read with statement of the recipient of the goods only point out to one fact that the appellant was indulging in clandestine activities. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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