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TMI Blog2017 (11) TMI 1386X X X X Extracts X X X X X X X X Extracts X X X X ..... l product requires corroborative evidence and analysis of all available evidences which should cumulatively lead to a conclusion that the goods have been manufactured and cleared clandestinely - demand withheld. Unaccounted income - Held that: - The income has been satisfactorily explained and accepted by income tax authorities. This aspect requires examination and clear finding by Original Authority - Similarly, the appreciation of evidence collected from the transporters has also not been made analytically - mater requires re-examination. Appeal allowed - part matter on remand. - Excise Appeals No. 56857-56858 of 2013 - Final Order No. 57796-57797/2017 - Dated:- 10-11-2017 - Hon ble Shri Justice Dr. Satish Chandra, President And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting in the impugned order. The Original Authority confirmed a total Central Excise duty liability of ₹ 7,08,17,971/- (Rs. 6,36,57,736/- + ₹ 71,60,235/-). He imposed equal amount of penalty on the main appellant and a further penalty of ₹ 1,50,00,000/- on the second appellant who is Director in the main appellant s company. 2. The Original Authority mainly concluded on the following lines :- (a) the shortage of raw material declared before Income Tax Authorities is not genuine as the same is not supported by any documentary evidence. The said shortage is actually unaccounted consumption of said raw material resulting in removal of final products silico manganese without payment of duty ; (b) the removal and sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis of presumptions and inference without any concrete evidence. Sporadic evidence with reference to certain mismatch of registration details of certain trucks have been taken to extrapolate the whole case of illicit manufacture and clearance. There is a mistake in mentioning the truck numbers as evidenced from the clarification of the appellant ; (c) the unexplained income as alleged in the impugned order is on account of speculative transaction and due explanation was recorded in the income tax assessment order for the year 2007-2008. Even otherwise, the amount accounts for only 5% of the demand confirmed in the present proceedings ; (d) the discrepancy of transport details of manganese ore fines/waste is mainly on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lleged to have been used in the unaccounted manufacture of Silico Manganese and cleared without payment of duty. The evidences relied on by the Original Authority are mainly certain discrepancies in the vehicle details as well as non-availability of buyers details supporting the clearance of huge quantities of manganese ore fines/waste during the material period. Unexplained income of ₹ 3.43 crores shown in the balance sheet for 2007-2008 also was considered as a corroborative evidence for unaccounted clearance of excisable goods. 7. On the first point with reference to reliance placed on various discrepancies in accounted clearance of manganese ore fines/waste we note that the appellants have submitted detailed defence to explain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear finding by Original Authority. Similarly, the appreciation of evidence collected from the transporters has also not been made analytically. It is also necessary for the Original Authority to give finding regarding submission of the appellant with reference to lack of evidence on additional usage of power, coal and other resources which can support the allegation of clearance of huge quantities of excisable final products without due accounting. 9. We also note that with reference to shortage of ore, the claim of the appellant is that these were cumulatively accruing over a long period and cannot be attributed to a particular financial year. This aspect requires examination with supporting evidence. 10. On careful consideration of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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