Recorded admissions and corroborative records can establish clandestine removal and sustain central excise duty and penalty.

Recorded admissions under Section 14 of the Central Excise Act, read with shortage findings and corroborative private records, supported a finding of clandestine removal and non-payment of duty. The absence of statutory entries for return of empty gunny bags and the use of company-sealed private records signed by the same person who admitted the clearances reinforced the department's case. Explanations based on clerical error, defective bags, and private trading were not substantiated and did not displace the documentary and oral evidence. The duty demand and penalty were therefore sustained, and the appeal was rejected on merits.

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Issues: Whether the confirmation of central excise duty and penalty was justified on the basis of shortage of finished goods, shortage of empty gunny bags, and private records showing clearance without payment of duty.

Analysis: The authorised representative's statement recorded under Section 14 of the Central Excise Act admitted shortage of cement and removal without payment of duty. The lower authority also found that there was no entry in the statutory register regarding return of empty gunny bags, and the private records were stamped with the company seal and signed by the same person who admitted the clearances. The explanations offered for clerical error, defective bags, and private trading did not displace the admissions or the documentary material relied upon by the department.

Conclusion: The duty demand and penalty were upheld and the appeal failed.

Final Conclusion: The impugned order was sustained on merits, with the result that the appeal stood rejected.

Ratio Decidendi: Admissions in recorded statements, supported by statutory and private records, can sustain a finding of clandestine removal and justify confirmation of duty and penalty where the assessee's explanations are unsubstantiated.

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