2004 (2) TMI 103

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..... te books. He has noted that the figures do not tally and that there is no systematic method of maintaining the records and each documents seized reflect a different picture and which document reflect correct picture has not been mentioned. He feels that the investigating authority has not properly investigated and have not brought forth the corroborative evidence on record to prove purchase of raw materials, manufacture of goods, payment made to the labourer, use of electricity and sale of the final product. The Commissioner has noted that none of the ingredients have been brought forth by the investigating officers. The department satisfied itself with the entries in the seized records and the statements. As has been held by the judgments .....

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..... Beco Industries Ltd. v. CCE - 2000 (121) E.L.T. 650 and that of Deepak Tandon v. CCE - 2000 (126) ELT 1079 that the charge that clandestine removal should be proved beyond doubt by production of affirmative evidence. He has noted that the demand based on note book without any other evidence of production and clandestine removal is not maintainable. He has noted from the citations that the demand cannot be sustained on the basis of private diary without considering production capacity, raw materials purchased, labour employed, power consumed, etc. He has noted citing the judgment of Metal Fitting Pvt. Ltd. v. CCE - 1997 (93) E.L.T. 747 and Krishna Co. v. CCE - 1998 (97) E.L.T. 74 that private note book raises a doubt but by itself it cannot .....

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..... een maintained systematically. 2. DR Shri A. Jayachandran took me through the records and also showed the seized the documents. He relied on the ground urged by the Revenue and in the memorandum of appeal. In the memorandum of appeal the grounds raised are based on the statements and the seized records. It is stated in the grounds that the seized records and the statements recorded are sufficient for the purpose of upholding the charge of clandestine manufacture and clearance of goods. 3. Counsel Shri S. Gokarnesan relied on the findings given by the Commissioner in the impugned order. He has also stated that the seized records does not reflect the correct picture as held by the Commissioner. He relied on the following judgments: (1) Krishn .....

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