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TMI Blog2024 (4) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst the main appellant herein alleging clandestine removal of the goods. Penalty on all the appellants has also been imposed. 2. The facts of the case are that the appellant is engaged in the manufacture of Sponge Iron, MS Ingots, TMT Rods, etc. On 18.03.2010, a search was conducted at their factory premises at Kalinga Nagar Growth Centre, office premises at Cuttack and office premises of M/s. Eastern Foods Private Limited (hereinafter referred to as 'EFPL') at Jagatpur, Cuttack. Various records were recovered and seized, Panchanama was drawn and seizure list was also prepared during the search at the premises of M/s. EFPL; some loose sheets and two notebooks were also recovered and seized. The said documents were containing entries on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that he could not recognize those documents. 3. After investigation, a Show Cause Notice dated 30.06.2011 was issued to the appellants alleging that the loose sheets and notebooks recovered in their premises i.e., the premises of M/s. EFPL, are documents reflecting clearance of goods without payment of duty. It has been mentioned in the Show Cause Notice that some entries also match with the invoices of the appellant and hence, those entries are nothing but reflection of clearance of the goods without payment of duty. Accordingly, Central Excise Duty amounting to Rs.1,12,98,357/-was sought to be demanded for the period from February 2007 to October 2008 along with interest and for imposition of penalty. 4. The appellant contested the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the relevant period, more than 3100 M.T. of Sponge Iron had been manufactured and removed. He further stated that the respondent did not record any statement from any supplier of raw materials or from the buyers of the goods; there is no evidence as to receipt of the sale consideration, transportation of goods, disproportionate procurement of goods, consumption of electricity, etc., available in this case. 5.3 He also stated that the names of the buyers have appeared in the Annexure annexed to the Show Cause Notice, but no investigation was made in respect of the buyers of the said goods as alleged; there is no evidence except the rough entries in the notebooks, which are not sufficient to allege clandestine removal of the goods. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l.)] vii. A.R. Shanmugasundaram v. Commissioner of C.Ex., Salem [2016 (333) E.L.T. 158 (Tri. - Chennai)] viii. Continental Cement Co. v. Union of India [2014 (309) E.L.T. 411 (All.)] ix. Triveni Engineering & Industries Ltd. v. Commissioner of C.Ex., Allahabad [2016 (334) E.L.T. 595 (All.)] x. Commissioner of C.Ex, Ahmedabad-I v. Gopi Synthetics Pvt. Ltd. [2014 (302) E.L.T. 435 (Tri. - Ahmd.)] xi. Commissioner of C.Ex. & S.T., Udaipur v. Mittal Pigment Pvt. Ltd. [2018 (16) G.S.T.L. 41 (Raj.)] xii. Commissioner of C.Ex., Delhi-I v. Mayfair Industries [2016 (338) E.L.T. 594 (Tri. - Del.)] xiii. Shree Venkatesh Metal Corporation v. Commissioner of C.Ex., Mumbai-V [2012 (284) E.L.T. 663 (Tri. - Mum.)] xiv. Commissioner of C.Ex., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drivers to find out as to whether those vehicles were used by the appellant for clandestine removal of the goods, in support of the allegation of clandestine clearance. 9.1 Further, no evidence has been produced by the Revenue with regard to excess purchase and payment thereof. No evidence in the form of excess consumption of electricity was brought on record. Moreover, no payment for clandestine removal of the goods by illicit means has been brought on record. Mere documents recovered from the premises of a third party cannot be the basis to allege clandestine removal of goods. 9.2 Moreover, it has not been ascertained as to who was maintaining those documents and who had kept these documents in the premises of M/s. EFPL. 10. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, it is found that with regard to alleged removals, the department has not investigated the following aspects : (i) To find out the excess production details. (ii) To find out whether the excess raw materials have been purchased. (iii) To find out the dispatch particulars from the regular transporters. (iv) To find out the realization of sale proceeds. (v) To find out finished product receipt details from regular dealers/buyers. (vi) To find out the excess power consumptions. 13. Thus, to prove the allegation of clandestine sale, further corroborative evidence is also required. For this purpose no investigation was conducted by the Department. 14. In the instant case, no investigation was made by the Department, even th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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