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TMI Blog2022 (12) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited. There are no document in any of these appeals which may corroborate the said statement of Shri Narendra Agrawal or such other document which sufficiently proves that Vikki stands for M/s. Pankaj Ispat Limited from no stretch of imagination there seems any correlation between the two - the findings by the Adjudicating Authority below for confirming the allegations of clandestine removal of finished goods (TMT Bars and MS Ingots) by M/s. Pankaj Ispat Limted are without any basis and cogent evidence. The only evidence is third party evidence. No efforts were put by the investigating team to seek corroboration from the documents of M/s. Pankaj Ispat Limited. The confirmation of demand and of allegations on third party evidence is highly unacceptable. There has been catena of decisions wherein it has been held that third party evidence has no evidentiary value and that the same is not at all admissible in law. As far as the proof of allegations of clandestine removal is concerned, it has been a settled law that such grave allegations cannot be confirmed merely on the third party evidence. There otherwise should be clinching evidence about nature of purchase of raw materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mit Steels is involved in facilitating clandestine removal of excisable goods by some of the iron and steel manufacturers of Raipur. Some incriminating documents/note pads were recovered from the premises during the said search as are detailed in the Panchnama of the even date. The investigating team recorded the statements of all concerned including Shri Narendra Agrawal (appellant), his brother Shri Naveen Agrawal, Shri Sailesh kasera, Factory Manager of M/s. Pankaj Ispat Limited and Shir Pankaj Agrawal, Appellant (Director of another appellant M/s. Pankaj Ispat Limited). 1.2 Based on those statements and the documents recovered from M/s. Amit Steels, department formed an opinion that the appellants are engaged in clandestine removal of their finished goods with the aid of Shri Narendra Agrawal, Proprietor of M/s. Amit Steels. Accordingly, vide the Show Cause Notice No. 13904 dated 16.09.2016 that central exicse duty for an amount or Rs.20,84,110/- on the alleged clandestine removal of TMT Bars, duty of Rs.1,72,358/- on the allegations of clandestine removal of MS Ingots and an amount or Rs.3,20,830/- equal to the proportionate Cenvat credit was proposed to be recovered along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es India Pvt. Ltd. Vs. CCE [F.O. A/51591/2019 (SM) dt. 30.10.2019] (vi) Sarthak Ispat Pvt Ltd. Vs. CCE [F.O. No. A/51564- 51565/2019 (SM) dt. 23.10.2019] Three of the appeals are accordingly prayed to be dismissed. 4. While rebutting these submissions learned Departmental Representative has impressed upon that Shri Narendra Agrawal was found to be a master mind in facilitating the manufacturers of MS Ingots, TMT Bars etc. while clearing their finished goods without payment of duty. It is due to the said reason that his premises only were searched. The documents recovered from his premises have meticulously been appreciated by the Adjudicating Authorities below, based whereupon that the demand has rightly been confirmed. Learned DR has impressed upon the findings in para 6 (6.1 to 6.5) of the order under challenge. Impressing upon no infirmity in those findings, the order under challenge is prayed to be upheld and three of the appeals are prayed to be dismissed. 5. Having heard the rival contentions and perusing the record of three of the appeals as well as the case law relied upon by the appellants, I observe and hold as follows: 5.1 The decision of the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only evidence is third party evidence. No efforts were put by the investigating team to seek corroboration from the documents of M/s. Pankaj Ispat Limited. The confirmation of demand and of allegations on third party evidence is highly unacceptable. There has been catena of decisions wherein it has been held that third party evidence has no evidentiary value and that the same is not at all admissible in law. The relevant case law is in the case of Bajranbali Ingots Steel Pvt. Ltd. Suresh Agarwal Vs. CCE, Raipur in Appeal No. E/52062 52066/2018 heard on 16.11.2018, wherein it is held as follows: 9. The law i.e. as to whether the third party records can be adopted as an evidence for arriving at the findings of clandestine removal, in the absence of any corroborative evidence, is well established. Reference can be made to Hon ble Allahabad High Court decision in the case of Continental Cement Company Vs. Union of India 2014 (309) ELT 411 (All.) as also Tribunal s decision in the case of Raipur Forging Pvt. Ltd. Vs. CCE, Raipur-I 2016 (335) ELT 297 (Tri.-Del.), CCE ST, Raipur Vs. P.D. Industries Pvt. Ltd. 2016 (340) ELT 249 (Tri.-Del.) and CCE ST, Ludhiana Vs. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in B.K. Rolling Mills Pvt Ltd. (supra) which was arising out of the same search as in the present case, has already dropped penalty against him. I do not find any such evidence in his appeal which may differentiate his case as with respect to the present appeal. It is accordingly held that the confirmation of imposition of penalty upon Shri Narendra Agrawal is also wrong due to the lack of cogent evidence about him in facilitating the alleged clandestine removal of the finished goods of manufacturers of TMT Bars and MS Ingots. 10. From the entire above discussion, I conclude that had the investigating team would have put some efforts to seek corroboration of the documents recovered from the premises of M/s Amit Steels, had at the stage of investigation itself search in the premises of various manufacturers, raw material providers, transporters etc. would also been conducted and had the persons who were recorded at the stage of investigation would have been produced before the Adjudicating Authorities as well, there could be the evidence to support the department s investigation at least the appeals of the manufacturers/traders would not have been allowed for the lack of evide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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