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TMI Blog2018 (2) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... e quantity covered in the alleged second set of invoices were actually raised in the factory of the recipients - the department has not conducted any investigation for unaccounted raw material for the huge clandestine clearance alleged against the respondent. So also there is no evidence for flow back of funds. The entire case is built on mere suspicions of officers without any documentary evidence. Appeal dismissed - decided against Revenue. - Appeal No. E/249/2010 - Final Order No. 40423/2018 - Dated:- 9-2-2018 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri S Govindarajan, AC (AR) For the Appellant Shri M.A.Mudimannan, Advocate For the Respondent ORDER Per Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in March 2007 and some of the consignments were not up to the quality and unfit for consumption, since that particular lot were taken out from the kiln on trial basis. That since these lots were nothing but rejection, they have not made any entries in their raw materials stock register but maintained a separate list of receipt of such goods and kept in the purchase file. Statements were also recorded from the buyers whose names were mentioned in the parallel set of invoices. It appeared to the department that respondents have manufactured and cleared goods without accounting and have resorted to suppression of facts with an intention to evade payment of duty. Show Cause Notice was issued to the appellant proposing to demand duty of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to adduce any evidence that the respondent has cleared any goods without payment of duty. The Ld.Counsel submitted that the department had obtained statements from the buyers whose name were mentioned in such invoices. These buyers have categorically stated that they received goods only as per duty paid invoices and have not received any goods without payment of duty. The appellant has maintained sales invoices file in a regular and proper manner. The Authorised Signatory of sister unit has explained the situation of receipt of goods in the month of March 2007 which was received without invoices. The said goods were not upto the quality and unfit for consumption. Since these goods were nothing but rejection, they have maintained separ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material, labour charges etc placed on record to substantiate the allegation of clandestine clearance of 1153.900 Metric Tonnes sponge iron, which is not a small quantity. On perusal of records, we are in full agreement with this observation of Commissioner (Appeals). Indeed the department has not conducted any investigation for unaccounted raw material for the huge clandestine clearance alleged against the respondent. So also there is no evidence for flow back of funds. It needs to be pointed out that though the officers visited the respondent unit at Gummiddipoondi on 29/3/2007 and recorded the statement on 3/4/2007, they have visited the sister unit only much later on 7/5/2007. We do not understand why such delay and lapse in conduct of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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