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TMI Blog2024 (10) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... resumption that in a medium scale industry like that of the appellant not a leaf moves without the nod from the higher authority . However, such blanket statements lead nowhere to uphold clandestine manufacture and clearance of finished goods. It is also noted that the sale invoices clearly indicate that the sale of the goods was made ex-factory. The department has not repudiated the assssee s contention that the delivery of the goods was taken by the broker of M/s. Industrial Associates (buyer) at the factory gate itself. The reliance placed by the learned adjudicating authority to build up this case for mention by way of indication of wrong vehicle registration numbers on the invoices, was in the context of the recipient of the finished g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansactions, the receipt of raw material duly explained, the department not being able to substantiate the charge by way of any corroborative evidence, the department s case stands on a weak footing having been built upon on presumptions and surmises. The impugned order is set aside - appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... lish the fact of clandestine manufacture and clearance of goods. The contention of the appellant is that the goods have been sold by them on ex-factory basis and were cleared on proper duty paying documents and have received payment thereto via banking channels. The fact that in some cases vehicles used for transportation of the goods from the manufacturer's end to the buyer premises were upon verification found to be such vehicles as could not have been possibly used for carrying the impugned goods cannot lead to the inevitable conclusion of goods having been surreptitiously removed, unless backed by other corroborative evidence. This is more so as the vehicles for cartage of the goods to the buyer's premise were in effect organized by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods to respond to this charge, as it indeed in the given situation is purely the discretion of the purchaser to transship the goods to the premises wherever the buyer deems fit. 6. The department also makes a passing reference that the buyer - Industrial Associates, was a mastermind of a huge scam of passing on Cenvat credit without physical movement of goods. Be as it may, for fastening duty liability on the appellant, the department would have to conclusively build up its case without any iota of doubt. We find that the learned adjudicating authority has in his order observed "While it cannot be denied the fact that goods were recorded as sold on ex-factory basis". The department cannot in vacuum infer about the movement of the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itself make out a foolproof case of clandestine clearance. 8. The Ld.Counsel for the appellant has also argued that they had before the lower authority sought cross-examination of the person on whose testimony the Revenue sought to rely on. However, we find no discussions in the order of the lower authority on this aspect of the matter and on that ground alone, the order is liable to be set aside for violation of principles of natural justice. 9. We also find that the reliance placed by the learned adjudicating authority to build up this case for mention by way of indication of wrong vehicle registration numbers on the invoices, was in the context of the recipient of the finished goods (page 56) and to make out by way of analogy a case o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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