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TMI Blog2003 (7) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... t whether the voluntary admissions were true and correct and whether they were reliable. The Commissioner has noted that there are several contradictions in the statement and they are not reliable for upholding the demands of clandestine manufacture and removal of goods. It is well settled now that the manufacturer should have the capacity to manufacture the item besides the revenue showing that the manufacturer had purchased the inputs, utilisation of the same in manufacturing of the end-product, proof of power consumption, sale of those materials clandestinely. Commissioner after due consideration has clearly recorded that no such evidence was placed by revenue. When there is no machinery set up in the factory, it is difficult to accept t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no evidence available to show that there was purchase of raw materials, capacity to produce goods, power consumption, employment of labour, payment made for raw materials, purchase and realisation of sale proceeds of the final product. He has also noted that there was no statement of any customers recorded. He also noted that the reading of the statement in its entirety would show that the persons have contradicted their earlier portion of the statement at the latter portion. He also noticed that the statements are not supported with any corroborative material evidence. He has noted that the case has been built on presumption and assumption on which basis demands cannot be confirmed. He has also quoted large number of judgments rendered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e revenue referred to a position where there was no contradiction in the statement and the statements were true and correct. The same position exists in K. Manickam v. CCE, Coimbatore (supra) case. While in the present case it is clearly found that the statements were contradictory and not reliable. Therefore, he submitted that there is no infirmity in the order passed by Commissioner (Appeals). 4. On a careful consideration, I find lot of force in the submissions made by Counsel. The revenue has not raised any ground on the various findings recorded by the Commissioner (Appeals). The only ground that they have taken up is the voluntary admission before the Customs/Central Excise Officers need not be proved as there is no assumption that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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