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TMI Blog2018 (8) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence. It was clarified by the Hon’ble that mere statements of buyers that too based on memories were not sufficient without support of any documentary evidence. The entire case of the Revenue is based upon the records recovered from M/s Monu Steels. Even in these records, the appellant’s name has not been spelt correctly and it is based upon the statement of the representative of M/s Monu Steels that the Revenue entertained an assumption about it to refer to the appellant’s clearances - the Revenue has not made any enquiries from the buyer’s Steels and has solely relied upon the entries made in the record of M/s Monu Steels - Any demand and the proportionate penalty on the Director of the manufacturer is not sustainable. Demand a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n agent dealing with various items of iron and steel products as that of sponge iron etc.(raw material) to be supplied to the manufacturer. 3. The department on intelligence gathered, conducted raid in the premises of M/s Monu steel on 15th January 2007 and in the premises of M/s Kailesh Traders on 20th December 2006. After recovering certain documents during the said raid, since the name of appellant was noticed therein that the Show Cause Notices dated 19th November 2009 was served upon the appellant alleging the clandestine removal of the ingots by the appellant as well and levy the demand as mentioned with the proportionate interest and the penalties. The said demand with the said penalty has been confirmed upon all the notices of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Shri Shyam Iron Power Pvt Ltd Ors. Vs CCE [F.O. No. A/51186-51187/2018-SM(BR) dated 04.04.2018] 6. Shree Consultants Pvt Ltd . Vs. CCE [ F.O. N. A/51225-51226/2018 SM(BR) dated 04.04.2018] 7. Kailsash Traders Vs CCE [F.O. No. 52116/2018-(SM) dated 31.05. 2018] To impress upon that the demand in the similar cases have already been dropped even about M/s Kailash Traders as well. In addition it is submitted that vide the impugned order the penalty has been imposed upon the Mr. Sunil despite no Show Cause Notice was ever served upon him. Also that a copy of the said order has been sent to one Mr. Ashok Who is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... removal, there has to be some clinching evidence and the demand cannot be confirmed based on presumptions and assumptions. The Hon ble High Court of Allahabad in the case of Continental Cement Co. Vs. Union of India 2-14 (309) ELT 411 (All) has held that the charge of clandestine removal is a serious charge, which is required to be proved by the Revenue by tangible and the sufficient evidence. It was clarified by the Hon ble that mere statements of buyers that too based on memories were not sufficient without support of any documentary evidence. 10. We find that the entire case of the Revenue is based upon the records recovered from M/s Monu Steels. Even in these records, the appellant s name has not been spelt correctly and it is based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ltd. 2016 (340) ELT 249 (Tri.-Del.) and CCE ST, Ludhiana Vs. Anand Founders Engineers 2016 (331) ELT 340 (P H). It stand held in all these judgements that the findings of clandestine removal cannot be upheld based upon the third party documents, unless there is clinching evidence of clandestine manufacture and removal of the goods. Any demand and the proportionate penalty on the Director of the manufacturer is not sustainable. Order under challenge is therefore held to suffer infirmity to this extent. 13. Now coming to the aspect of demand and imposition of penalty qua M/s Kailash Traders, it is opined in the given facts and the respective arguments that M/s Kailash is the supplier of sponge iron (the raw material) to the manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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