9911796707
TMI Blog2003 (7) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... . The revenue has relied on the judgment rendered in the case of Haryana Acrylic Manufacturing Co. Pvt. Ltd. v. CCE [ 2000 (9) TMI 541 - CEGAT, NEW DELHI] . On perusal of the judgment it is seen that there was shortage of inputs and the inputs had been removed from the stores and had been placed in a different place. They also found documents of removal supported by the transport documents from head office to factory and various other pieces of circumstantial evidence to establish the fact of receipt of inputs, manufacture of goods and sale of the same. In view of that Tribunal upheld the discharge of clandestine removal. In the present case, except the chits and the admissions which is based on the chits, revenue has not produced any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring and reiterated the submissions made in the appeal. I take both the appeals together for passing a common order. M/s. Madras Suspension Ltd. is manufacturing leaves and assembly falling under chapter Heading 7320 of the CETA, 85. The company has 3 units. Unit-I and III in Madurai and Unit II at Karnataka. Only Unit-III is at present functioning. Unit-I stopped production on 21-10-1998. The distance between Unit-I and III is around 10 kms. There is no other evidence adduced by the department other than the chits/notes. No statement is recorded from the security who maintained the chit and note. Unit-I has stopped functioning from 21-10-1998. That is the reason for around 30 MT of scrap. The invoice on 26-10-1998 relates to 48 assembly cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chit/note is not sustainable. Reliance placed on the following judgments 2001 (130) E.L.T. 344 in the case of MTK Gurusamy. It has been held that Demand clandestine removal - private note book maintained by a part time employee containing unauthenticated entries and over writings not to be relied on for establishing clandestine removal in absence of any corroboration in the form of seizure of goods or invoice or purchase of raw materials, etc. "1989 (39) E.L.T. 655 (T) in the case of Kashmir Vanaspathi (P) Ltd. wherein it has been held that demand - clandestine removal - note book maintained by labourers containing unauthenticated entries and over writings not a dependable record to establish clandestine removal unless same supported by ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... du who took me through the entire record and both the impugned orders and submitted that there are clear admissions made by the assessee and the staff and based on the private chits and therefore the demands are required to be confirmed. 4. Shri Rajkumar Appa Swamy, Advocate contended that in the cited case, the Tribunal had noticed the evidence of clandestine manufacture and removal of goods. There was shortage in the physical stock of the raw materials and that shortage was not explained. They also found inputs in other places than the notified place. There were several other pieces of evidence which established the manufacture and clearance of goods clandestinely and the Tribunal has not departed from the ruling that the demands cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n have not been challenged to show that there was excess consumption. The Tribunal in large number of judgments have held that for confirmation of demands there has to be purchase of inputs, excess utilisation of power consumption, shortage of raw materials in terms of entries made in RG I register, sale of final product clandestinely, evidence of transport, etc., to establish the production of sale of final goods. In the present case no such evidence has been placed on record. Therefore, the Commissioner (Appeals) after due consideration found that there was no evidence on record and based on the Tribunal's judgment has set aside the demands. He has also noted that the lower authority had dropped a demand of Rs. 26,801/-mentioned in the ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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