9911796707
TMI Blog2004 (1) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... ips wherein some entries have been made cannot be the basis including the statement recorded in terms of the ratio of the judgments cited by the counsel. In view of lack of evidence the appellant's plea is required to be accepted. The fact that they deposited Rs. 3 lakhs in their PLA a/c cannot be made to sustain the confirmation of demands. Appellants have explained that due to pressure from the department, an amount of Rs. 3 lakhs was deposited in the PLA to avoid penal proceedings. There is no investigation pertaining to the excess use of electricity for the purpose of manufacture of the item in question. The electricity required to be used would have shown excess consumption for manufacture of the final product. No such evidence has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were relied by them but the Commissioner has refused to follow the same although he has noted those judgments. He cited the following judgments in support of his contention :- (i) Ganga Phosphorus and Chemicals Ltd. v. CCE - 1995 (77) E.L.T. 589 (T) (ii) Lili Foam v. CCE - 1990 (46) E.L.T. 462 (T) (iii) Padmanabh Dyeing and Finishing Works v. CCE - 1997 (90) E.L.T. 343 (T) (iv) Ramgelcum Industries (P) Ltd. v. CCE - 1997 (89) E.L.T. 178 (T) (v) K. Harinath Gupta v. CCE - 1994 (71) E.L.T. 980 (T) He submits that even mandatory penalty is not imposable in the light of Larger Bench judgment rendered in the case of Escorts JCB v. CCE - 2001 (133) R.L.T. 35 (sic). He submits that combined penalty under Section 11AC of the C.E. Act and Rule 173 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are held to be not sufficient to confirm the demand of duty and allegation of clandestine removal. It is well settled law that there has to be some evidence in the form of receipt of raw materials, shortage of raw materials, clandestine manufacture including use of electricity, excess or shortage of inputs found in the stock, flow back of funds, purchase of final products by parties alleging receipt and removal of goods and any such evidence which would show clandestine manufacture of goods. Mere slips wherein some entries have been made cannot be the basis including the statement recorded in terms of the ratio of the judgments cited by the counsel. In view of lack of evidence the appellant's plea is required to be accepted. The fact tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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