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TMI Blog2018 (2) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... The allegation is that unaccounted raw materials, i.e. MS ingots were received by the respondent from DSML. However, no documents have been unearthed from the premises of the respondent to show such unaccounted receipt of raw materials or unaccounted manufacture and clandestine clearance of finished products. The use of the electricity consumption or the accounts of finished products manufactured during the relevant period as recorded in the registers do not show any discrepancy. So also there is no evidence to support the transportation of unaccounted receipt of raw materials or the unaccounted / clandestine clearance of finished products. The main evidence which is the computer printout taken from the hard disc of the computer of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestigations, show cause notice was issued to the respondent inter alia alleging that during the period from 20.11.2004 to 2.12.2004, the respondent had clandestinely cleared 464.390 MT of CTD / TMT bars totally valued at ₹ 93,36,822/- involving duty amount of ₹ 11,42,827/-. It was also alleged that for such manufacture and clearances, the respondents had unaccounted raw material from DSML to the tune of 334.535 MT plus 105.995 MT of MS ingots. After adjudication, the original authority confirmed the duty demand along with interest and also imposed penalties. In appeal, Commissioner (Appeals) set aside the same. Hence this appeal. 3. On behalf of Revenue, ld. AR Shri S. Govindarajan reiterated the grounds of appeal. He submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statements from the Director of the respondent company. When there are sufficient documentary evidence available to establish the clandestine removal of goods, the fact that only one statement was recorded from the Director and no further statements were recorded from Director of DSML is of no consequence. The contention of the respondent that further statements have been recorded from the Director of DSML at the back of the respondent and the respondent was given a chance to counter those statements is without basis. When documents seized and also relied upon gives a clear picture of the clandestine removal made by the respondent and when the author of the loose sheets had been identified by the said Director no further proof or cross-exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments is not proper or legal. The said documents have been corroborated by the statement of the Director of DSML and therefore has been rightly relied by the original authority. No further corroboration is required. The first appellate authority ought to have seen that the Revenue has established the case on preponderance of probabilities. 4. On behalf of the respondent, ld. counsel Shri S. Venkatachalam supported the impugned order and reiterated the contentions stated in the cross-objection. He submitted that the allegations have been based on presumptions and assumptions of officers who have conducted the investigation. The allegations are made mainly based on statements. These statements were recorded under threat and pressure and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not been issued to DSML as they would have replied furnishing correct facts and details. Reading of the statement with connected documents would reveal that the statements contained several contradictions. The alleged computer sheet was said to be taken from hard disc recovered from DSML 22 months prior to the date of recording the statement. The print out is taken three months prior to the date of statement and after 19 months from the date of search and seizure which was conducted on 3.12.2004. This clearly cast suspicion about the genuineness of the computer sheets relied in the show cause notice. No documents have been recovered from the premises of the respondent to prove unaccounted receipt of MS ingots. The department has compare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived by the respondent from DSML. However, no documents have been unearthed from the premises of the respondent to show such unaccounted receipt of raw materials or unaccounted manufacture and clandestine clearance of finished products. The use of the electricity consumption or the accounts of finished products manufactured during the relevant period as recorded in the registers do not show any discrepancy. So also there is no evidence to support the transportation of unaccounted receipt of raw materials or the unaccounted / clandestine clearance of finished products. Another ground discussed by the first appellate authority is that the statement from the Director of DSML Shri Suresh Kumar Aggarwal was recorded several times whereas the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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