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TMI Blog2018 (7) TMI 1779X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, it is found that the statement by itself cannot be made the basis for arriving at the clandestine activities and such confessional statements are required to be corroborated by independent evidences - The allegations of clandestine removal is a serious charge and the onus to discharge the same is upon the Revenue, who is required to prove it by production of sufficient and admissible legal evidence. CENVAT Credit - it was alleged that input pig iron stands cleared by the appellant after availing the Cenvat Credit - Held that:- Apart from the fact that Revenue has alleged sale of the pig iron, there is no investigations either at the end of the buyers or transporters or the manner of receipt of consideration for the same. Further no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 to 12.01.2013 which clearances were not entered in the statutory records. Statement of Shri Manoj Goel, Director of the company was recorded wherein he admitted that the pig iron had been cleared by them without reversal of applicable Cenvat Credit. As regards the entries in the dispatch log sheet, he deposed that they had cleared their final product without payment of excise duty and admitted short-payment of duty of ₹ 10,16,171/-. On the above basis proceedings were initiated against the appellants by way of issuance of a show cause notice dated 29.01.2014 proposing confirmation of demand of duty on the allegations of clandestine removal of their final product as also proposing to confirm the Cenvat Credit availed by them in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eets has been approached by the Revenue so as to investigate the matter at that end. The appellants have contested the statement as having been given under duress, as the language of the statement itself suggests. In any case, I find that the statement by itself cannot be made the basis for arriving at the clandestine activities and such confessional statements are required to be corroborated by independent evidences. The allegations of clandestine removal is a serious charge and the onus to discharge the same is upon the Revenue, who is required to prove it by production of sufficient and admissible legal evidence. The recovery of the log sheet and recording of the statement of the Director may be the starting point of investigations, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the production floor being work in progress. 5. I find favour in the above contentions of the appellant. Apart from the fact that Revenue has alleged sale of the pig iron, there is no investigations either at the end of the buyers or transporters or the manner of receipt of consideration for the same. Further no inventories were made at the time of stock-taking and there is nothing on record to show that the stock available at the production floor or as work in progress was also taken into consideration. The entire investigations of the Revenue are filmsy and does not take the matter to its logical end. Accordingly the impugned orders are required to be held as unsustainable. The same are accordingly set aside and both the appeals are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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