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TMI Blog2018 (7) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... e Road Dryer Plant". These reports were verified with the ER-I Returns for the period April, 2003 to March, 2004 and December, 2006 to January, 2008. The differential quantity has been calculated by the audit team to be 2,467,283 MT in respect of items Resin Powder amd Hardener. Show Cause Notice dated 28.04.2008 was issued for the recovery of central excise duty alngwith interest and to impose penalty. The Adjudicating Authority confirmed the demand along with interest and imposed penalty under Section 11AC of the Central Excise Act, 1944. Hence, the present appeal before the Tribunal. 2. Ld. Consultant appearing on behalf of the appellant company submits that the Adjudicating Authority did not give proper consideration to the points in d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant that the benefit of natural justice was denied to them and the impugned order was passed in gross violation of the principle of natural justice. 6. We further observe that in terms of the provisions contained in the Manual meant for conducting EA-2000 Audit, the auditors are required to scrutiny the records maintained by the assessee in the normal course of business and the records are declared by the assessee under Rule 22(2) of the Central Excise Rules, 2002. The Auditors are also required to call for the said document for conducting scrutiny under Rule 22(3) of the said Rules. We also observe that exercise of audit is clearly distinct from anti evasion activity. The subject "Monthly Production Report of Hyde Road Dryer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of excess raw-materials and extra consumption of electricity. There is no seizure of clandestinely removed finished goods or seizure of any cash of clandestine transaction involved in such suspected clandestine clearance.
7. In view of the above observations and settled proposition of law in the present proceedings, a private document without any corroborative evidence brought on record cannot be made the basis of clandestine manufacture and clearances of excisable goods and accordingly duty demanded by Revenue is not sustainable. In view of the above discussions the appeal filed by the appellant is allowed with consequential relief, if any.
(Operative Portion of the Order already pronounced in the Open Court) X X X X Extracts X X X X X X X X Extracts X X X X
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