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TMI Blog2018 (8) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... irst schedule to the Central Excise Tariff Act, 1985 and were availing the benefit of Cenvat credit of the duty paid on the inputs i.e. Semi Kraft Paper, Virgin Kraft & Duplex Paper/Board. 2. There factory was visited by Anti-Evasion of Central Excise officers on 05.10.2007, who conducted various checks and verifications. Certain shortages were found in various raw materials for which a separate show cause notice dated 02.04.2008 stands issued to them, which is not the subject to matter of present appeal. 3. Subsequently, revenue conducted investigations and recorded the statements of various persons. Statement of Shri Upendra Gupta, Director of the manufacturing unit as also Shri Navneet Kumar, Security personal, Shri Kiran Chand, Produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of the search of the factory, for the period from April, 2005 to September, 2007 and evasion of duty to the extent of Rs. 2,832/- was alleged on the mis-declaration of the goods in the invoices. 5. In the above back ground, proceedings were initiated against the appellant by way of issuance of show cause notice dated 07.07.2010, proposing confirmation of all the demands and proposing imposition of penalty on the appellant-company as well as on the Director. The said show cause notice culminated into an order passed by the Additional Commissioner confirming the demand and imposing penalties on the appellant-company as well as on the Director. The order of the Original Adjudicating Authority stands upheld by the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to examination-in-chief or to cross examination. And as such, the said statements are to be kept out of consideration, as held by Hon'ble Punjab & Haryana High Court in the case of M/s Jindal Drugs Pvt. Ltd. Vs Union of India 2016 (340) ELT 67 (P & H) and nothing survives in the present case of the revenue. We also note that the appellants have taken a categorical stand before the authorities below, which does not stand disputed by the revenue that the payments were by the appellants through the bank channels i.e. ride cheques, which establishes that the Duplex Paper Board was actually purchased by the appellants. There is neither any allegation nor any evidence of flow back of money from the raw material seller to the appellants. The con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods in the absence of any finding of documents evidence when the payments stand made through banking channels and no investigation stands conducted with the raw material supplier. In the present case also we note that the revenue has not approached the raw material supplier and has not investigated the material at their end to the same effect is the Tribunal's decision in the case of Commissioner of Central Excise Delhi Vs Bharat Interprises 2017 (346) ELT 308. 8. In view of the forgoing we set aside the demand of duty of Rs. 12,31,553/- along with penalty of identical amount. 9. As regards the confirmation of demand of Rs. 4,06,382/- based upon the dispatch advices and parallel invoices, there is a recording by the Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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