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TMI Blog2018 (1) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... quantity of M.S. Ingots and Sponge Iron, the appellants require huge quantities of raw materials. This aspect has not been considered analytically for a finding. It is relevant to note that if the appellant manufactures un-accounted quantity of both the M.S. Ingots and Sponge Iron and Sponge Iron have been used for further manufacture of M.S. Ingots, duty cannot be confirmed on both. It is important in such situation, to have independent corroboration about the reliability of such private records. If all statements and deposition during the cross examination are admittedly voluntarily made, preference for one statement ignoring other such statement and deposition during the cross examination, can be made when supported with due corrobor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the appellants were also recorded. On completion of the investigation, show cause notice was issued to demand and recover central excise duty from the appellant on account of clandestine clearance of excisable goods. The appellants defended their case and submitted against the proposals made in the show cause notice. The demand covered the period from July, 2010 to June, 2011. The Original Authority issued the impugned order, which is now contested before us. 2. Ld. Counsel appearing for the appellant submitted on the following lines:- (a) The impugned order was a non-speaking one. Various legal and factual points raised by the appellant have not been dealt with by the Original Authority. (b) The case of the Department is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MTs of iron ore even assuming the highest recovery at 63%. These figures will show that there is no evidence to such a quantity of goods having been manufactured by the appellant. (f) Further, M.S. Ingots are only made from sponge iron. Duty cannot be demanded both on M.S. Ingots and Sponge Iron. Any duty paid on such input materials shall also be available as a cenvat credit. (g) There is no corroboration of the details entered in the lose sheet recovered from third party. The stock taking has not been properly made. The panchnama did not mention the manner of stock taking and the Commissioner has used his personal knowledge to justify the correctness of the stock mentioned in the panchnama. The shortage, if any, of raw materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order did not deal with all the factual and legal submission made by the appellant before the Adjudicating Authority. Some of the crucial point were not examined that the basis (formed) for arriving at the conclusion of clandestine manufacture and clearance, as mentioned by the appellant. To manufacture the alleged quantity of M.S. Ingots and Sponge Iron , the appellants require huge quantities of raw materials. This aspect has not been considered analytically for a finding. It is relevant to note that if the appellant manufactures un-accounted quantity of both the M.S. Ingots and Sponge Iron and Sponge Iron have been used for further manufacture of M.S. Ingots, duty cannot be confirmed on both. On reliance placed on records recove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Tribunal. One such reference can be made to Tribunals order in the case of Sree Aravindh Steels Ltd. v. Commissioner of Central Excise, Trichy - 2007 (216) E.L.T. 332 (Tri.-Chennai). Further, reference can be made to Tribunal s decision in the case of Rimjhim Ispat Ltd. v. CCE, Kanpur - 2013 (293) E.L.T. 124 (Tri.-Del. ) as also to the Hon ble Gujarat High Court decision dated 13-4-2011 in the case of Commissioner v. Mahesh Harlalka vide which the Tribunal s order setting aside the impugned order of the lower authorities confirming the demand jointly and severely, therefore set aside and the matter was remanded, stands upheld by High Court. 10. Apart from the above infirmity, on the facts and law, we also note tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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