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TMI Blog2018 (11) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... od/Ply Boards and availing Cenvat credit on the inputs used in manufacturing of the said goods. To manufacture of final product, the appellant requires timber/fatti, core veener, face veneer, phenol, melamine and formaldehyde to manufacture their final product, namely plywood/Ply Board, the appellant is availing Cenvat credit on the inputs and clearing their final goods on payment of duty. An investigation was conducted by the DGCEI at the end of M/s Ashoka Drugs, M/s Shiva Chem and M/s Dechem Plastic Pvt. Ltd. wherein it has been found that these three firms are manufacturing formaldehyde and clearing the same without payment of duty, certain weighment slips were also recovered from these three units on which the name of the appellant is m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment has failed to establish from where these other inputs have been procured by the appellant and where the goods have been sold by the appellant no statement of the transporters have been recorded, how much electricity has been used by the appellant and how much electricity is required by the manufacturer, in these circumstances, the demand against the appellant cannot be raised, on the basis of assumptions and presumptions. It is also submitted by the Ld. Counsel that the appellant sought cross examination of the witnesses whose statements has been relied upon to issue show cause notice to the appellant but no cross examination of those witnesses has been granted, and no procedure under Section 9D of the Central Excise Act, 1944 has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant that they have received one of the inputs clandestinely and manufactured of the final product which has been cleared clandestinely. All these allegations are on the basis of assumptions and presumptions without any evidence of record. In these circumstances, in the light of decision of this Tribunal in the case of Samrat Plywood Ltd. vide final order no. A/62379-62382/2018 wherein it has been held that in the absence of the evidence of procurement of other raw material to their manufacture of their final product, the charge of clandestine manufacture and removal of the goods is not sustainable, merely, on the basis of the receipt one of the raw material, on the basis of the statement of the third party. I hold that the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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