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TMI Blog2017 (12) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... allegations of clandestine clearance is a very serious charge and is required to be established on the basis of tangible evidence. But this onerous burden has not been discharged by Revenue. The department has failed to bring on record tangible evidence to support the allegation of clandestine clearances. Appeal allowed - decided in favor of appellant. - E/54216, 54387, 54388/2015, E/Misc/50703/2017 - A/58451-58453/2017-EX[DB] - Dated:- 20-12-2017 - (Dr) Satish Chandra, President And Mr V. Padmanabhan, Member (Tech) For the Appellant : Shri B.K. Singh, Advocate For the Respondent : Shri M.R. Sharma, DR ORDER Per: V. Padmanabhan These appeals are filed against the Order-in-Original No.17/15-16 dated 19.08. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants were manufacturing cement by using slag, in addition to clinker, and the actual quantity of slag consumption was not recorded. The full quantum of cement manufactured was also not recorded. Accordingly, on the basis of the private records, the department demanded duty on 12037.696 MT of excess cement cleared clandestinely amounting to ₹ 66,23,014/- along with interest and penalty on the firm as well as the partners. Aggrieved by the impugned order, the present appeals have been filed by the assesses as well as both the partners. 2. With the above background, we heard Shri B.K.Singh, ld Advocate, representing all the appellants as well as Shri M.R. Sharma, DR, representing Revenue. 3. The main argument on behalf of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submitted that the writing pads recovered evidenced the receipts of slag without account as well as the production and clearance of cement during the disputed period. These figures have also been admitted not only by Shri Panda but also by the partners. Consequently, he prayed that the impugned order may be sustained. 5. After hearing both the sides and perusal of record, we find that the main evidences cited by the Revenue are: i) Presence of two trucks in front of the factory at the time of the visit of the officers. These trucks were loaded with slag and the driver stated that slag was meant for the appellant. However, the presence of the trucks is not confirmed by drawing of any panchnama by the departmental offices. ii) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted. The circumstantial evidence in the form of two trucks found standing in front of the factory is not supported in the form of a panchnama. The capacity of the factory to produce cement containing clinker and slag 50:50 is doubtful. Under the circumstances, we are of the view that the evidences can, at the most, give rise to doubt in the mind of a prudent man that the entire receipt of raw materials and clearance of finished products is not accounted. However, the allegations of clandestine clearance is a very serious charge and is required to be established on the basis of tangible evidence. But this onerous burden has not been discharged by Revenue. 8. In the case of M/s Continental Cement Co. Vs Union of India - 2014 (306) ELT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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