9911796707
TMI Blog2005 (1) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In this case, unfortunately, there is no corroborative evidence at all to sustain the charge that the appellants cleared goods for the period from 11/97 to 11/98. In the following case laws it has been held that clandestine production and removal cannot be sustained merely on the basis of private documents seized without any corroborative evidences. The quantity of purported clandestine production and clearance has been arrived at on certain assumptions and presumptions. Moreover the authors of the private documents have not been cross-examined. There is no evidence of excess consumption of electricity. There is also no evidence of unaccounted purchase of raw materials. The revenue has not unearthed any evidence regarding the buyers of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers in various cities on payment of duty. The dealers are non-exclusive dealers and therefore, are engaged in the trading of coated cotton fabric manufactured by other manufacturers also. During investigations, the department recovered a Register pertaining to the use of release paper at some finished stage maintained in the production department of the appellant. This Register was numbered '12F' by the Department. During the search on 9-1-1999, the department recovered certain slips which the appellants suspected were being planted in their premises. These slips were placed in a file and numbered as '13F'. The officers effected seizure of certain quantity of coated cotton fabric from dealers at Hyderabad, Chennai and Delhi. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tres to manufacture the coated fabrics. Further there is no evidence of receipt of unaccounted chemicals like resin for use in manufacture of the coated fabric. Department has also not found any evidence of excess consumption of electricity. There is also no evidence regarding receipt of any excess payment from the purchaser. There is no evidence of purchase of purported unaccounted goods. The appellants raised doubt regarding the genuineness of the document '13F' and bonafides of its writer Shri T. Balakrishna Rao. As he has not made available for cross-examination no reliance can be placed on his statement. The learned Advocate relied on a plethora of case laws. As regards the seizure of excess quantity at Chennai, the dealer of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n RGI. In the absence of corroborative evidence, the notebook cannot be used to allege excess production. The learned Counsel and Advocate conceded that the demands of Rs. 46,893/- being Modvat taken on inputs cleared is correct. In view of the above submissions they urged that the entire demand, penalties, fine as well as interest demanded should be set aside. 6. Shri L. Narasimha Murthy SDR reiterated the points in the adjudication order. 7. We have gone through the records of the case carefully. The charge of clandestine removal is sought to be established on the basis of private records whose authenticity is doubted by the appellant. No doubt, private records throw some light on the activities of the appellant unit but to sustain the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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