Clandestine removal inferred from unexplained stock and records, with two concerns treated as one practical unit.

Clandestine removal was inferred where two separately described concerns were treated as one practical unit, and records recovered from the Kinari Bazar premises showed sales of wires and cables without a satisfactory explanation for the source of 3,060 coils. As neither concern could account for receipt of the goods, the surrounding circumstances were accepted as sufficient to support the conclusion that the goods had been received and removed without payment of duty and without entry in the statutory R.G.I. records. The adverse finding was upheld and the appeal was rejected.

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Issues: Whether the finding of clandestine removal of wires and cables from the factory at Sita Ram Bazar to the Kinari Bazar concern without payment of duty and without accounting for the goods in the statutory records was sustainable on the available material.

Analysis: The two concerns, though separately described, were found to be one practical unit. The records recovered from the Kinari Bazar premises showed sales of wires and cables, and neither concern could produce evidence explaining the source of 3060 coils sold during the relevant period. In the absence of any explanation for receipt of the goods, the surrounding circumstances were treated as sufficient to support the inference that the goods had been received and removed without duty and without entry in the R.G.I. records.

Conclusion: The adverse finding was upheld and the appeal was rejected.

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