9911796707
TMI Blog2024 (7) TMI 1456X X X X Extracts X X X X X X X X Extracts X X X X ..... m the 1st Appellant has been explained to be the advance received from M/s. Nagaraja Agencies, which is also supported by the statements of the employees as well as the proprietor of M/s. Nagaraja Agencies and hence, the said cash was not attributable to the alleged clandestine sale. In any case, the addition was made solely based on the statements of the employees which statements have been retracted on a later point of time. Thus, a reasonable belief that the said amount did not represent the sale proceeds of the clandestinely removed goods has to be drawn because no incriminating evidence was found during the search, and nor is there any supporting evidence to this effect. Alleged discrepancy as regards the excess supply over and above t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on record to justify even the levy of penalties and interest and therefore, the interest charged on the appellants and the penalties imposed on them cannot sustain. The impugned order is set aside - appeal allowed. - SHRI P. DINESHA, MEMBER (JUDICIAL) Shri S. Venkatachalam, Advocate for the Appellant Shri Anoop Singh, Authorized Representative for the Respondent ORDER It is the case of the Department that during search, upon gathering intelligence that the taxpayer was indulging in manufacture of CTD bars and TMT rods that were later on removed in clandestine manner, the employees of the Assessee firm who were found appears to be examined. The search team also found an amount of ₹7,47,450/- which was alleged to be not supported by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as advance for the supply of steel rods, the supply having been effected by first appellant per invoice dated 29.3.2012 and the remaining quantity was supplied on 13.6.2012 for which the balance amount was also paid to first appellant on 04.7.2012. 4.1 Insofar as the second appellant is concerned, it is the case of the Department that the entries of receipt of goods made by Raasi Traders the second appellant, in their account notebook, it was claimed that they had received TMT bars / rods in excess of the Invoice raised/issued by ASL, which fact was also claimed to be supported by the statement of the partner Sri Gunasekaran. 4.2 It appears that vide letter dated 28.8.2012, the 2nd appellant Raasi Traders appears to have clarified with rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellants and Sri Anoop Singh, ld. Joint Commissioner, for the Revenue-Respondent. I have perused the Orders of both the lower authorities and I have also gone through the documents placed on record. I find that the facts are common in respect of these appeals and hence, the appeals could be disposed of by a common order. The only common issue that arises for my consideration is, whether the Department has established the clandestine removal as alleged and upheld in the impugned order? 6.1 I find that the cash found and seized from the 1st Appellant has been explained to be the advance received from M/s. Nagaraja Agencies, which is also supported by the statements of the employees as well as the proprietor of M/s. Nagaraja Agencies and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of clandestine removal is without any basis. I find that the department has nowhere denied the facts as explained by the 2nd appellant that the document alleged to be seized from their premises did not show anywhere the name of the first appellant who is alleged to have supplied goods in excess. It also remains undisputed about the clarification offered by the 2nd appellant as regards the alleged excess stock found vis- -vis the actuals found in their book and hence, the alleged excess stock was nothing to do with the 1st appellant. 8. In the light of the above, I am of the view that the department has not established clandestine removal or clandestine sale by the 1st appellant and nor has the department succeeded in corroborating the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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