9911796707
TMI Blog2022 (1) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be consumed to manufacture such a huge quantity of the goods. From the records, it is not coming out whether the Revenue has made such effort to ascertain the facts from where the other raw materials were procured and how much is the electricity is consumed. Moreover, when it alleged that the appellant has sold the said clandestine manufactured goods, no statement of any buyer is brought on record to establish the fact that the appellant has cleared clandestinely manufacture goods without payment of duty. In the absence of any evidence on record, the charge of clandestinely manufactured clearance of the goods without payment of duty cannot be sustained. No cross examination of Shri. Ashok Aggarwal has been allowed to the appellant to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t duty liability against majority of clandestine supply was discharged by these firms by issuing invoices to some traders without supplying goods to them. The Show cause notices were issued to these firms who settled the show cause notices by the Settlement Commissioner vide order dt. 13.08.2014 and 30.07.2017. During the course of search of the above said firms manufacturing Formaldehyde, weighment slips issued by various Dharm-Kantas located at Yamuna Nagar evidencing clandestine supply of the Formaldehyde to various manufacturers of Plywood and Plyboard including the appellant were recalled and resumed by the officers of DGCEI. In most of the weighment slips issued by various Dharm-Kantas vehicle numbers, name of factory of manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem Plastic Pvt Ltd. as stated by Sh. Ashok Aggarwal in his statement and manufactured and cleared Plywood and Plyboard without accounting in their statutory records without payment of Central Excise duty during 2011-12 and 2012-13. On the basis of that, a demand of ₹ 2,22,13,272/- was proposed to be recovered from the appellants and to impose the penalties. The matter was adjudicated and demand of duty along with interest was confirmed. Penalties were also imposed on both the appellants. Against the said order, the appellants are before us. 3.1 Sh. Jagmohan Bansal, Senior Advocate appeared on behalf of the appellants submitted that in the said investigation, a search was conducted against 26 parties who were alleged to be received F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant and how the appellant has manufactured such a huge quantity of the goods and cleared the same without payment of duty, there is no statement of buyer of the appellant to establish the fact that the appellant has cleared the goods clandestinely. Moreover, no evidence has brought on record with regard to consumption of electricity. It is also submitted that no cross examination of Shri Ashok Aggarwal, supplier has been provided to the appellant. In these circumstances, the impugned order is to be set aside. 4. On the other hand, the Ld. AR reiterated the findings of the impugned order. 5. Heard the parties and considered the submissions. 6. On going through the merits of the case, we find that the case has been booked against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture their final product the appellant required inputs, namely, timber/fatti, core veener, face veneer, phenol, melamine apart from formaldehyde. It has been alleged that the appellant has received formaldehyde without payment of duty, the Revenue has failed to establish from where the appellant has received other inputs and no any stock taking to that effect has been done to ascertain the truth, merely ,on the basis of the statement of third party or the documents recovered from the possession of the third party the case has been made out against the appellant 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 assump ..... X X X X Extracts X X X X X X X X Extracts X X X X
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