Clandestine removal proved from duplicate records, sustaining duty demand, penalties, and rejection of the limitation defence.

Duplicate accounts and unrecorded clearances in the statutory records were treated as sufficient evidence of clandestine removal, and the duty demand and penalties were upheld. The explanation disputing the alleged removals was found unsupported by the record. The same factual basis also defeated the limitation plea, because suppression of clearances and maintenance of duplicate records negated the time-bar defence. The appeal therefore failed in full, leaving the confirmed duty demand and penalties undisturbed.

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Issues: (i) whether the demand of duty and penalty were sustainable on the basis that the appellant maintained duplicate accounts and removed goods without payment of duty, and (ii) whether the demand was barred by limitation.

Issue (i): whether the demand of duty and penalty were sustainable on the basis that the appellant maintained duplicate accounts and removed goods without payment of duty.

Analysis: The record showed that duplicate copies of accounts were maintained and that the clearances covered by those documents were not reflected in the statutory records. The explanation advanced to dispute the alleged clearances was found to be unsupported by the evidence on record. The finding of clandestine removal was accepted, and the reasoning of the Commissioner was held to be well founded.

Conclusion: The demand of duty and the penalties were upheld against the assessee.

Issue (ii): whether the demand was barred by limitation.

Analysis: The plea of time bar was rejected on the same factual foundation, namely the maintenance of duplicate accounts and suppression of the relevant clearances from statutory records. On those facts, no limitation defence was accepted.

Conclusion: The demand was not time-barred and the plea failed against the assessee.

Final Conclusion: The appeal failed in its entirety, leaving the confirmed duty demand and penalties undisturbed.

Ratio Decidendi: Where clearances are proved from duplicate records and are absent from the statutory accounts, the resulting finding of clandestine removal sustains the duty demand, related penalties, and the rejection of a limitation defence.

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