Clandestine manufacture and removal proved by corroborated recoveries, records, and statements; duty liability and confiscation upheld.

Clandestine manufacture and clearance of excisable goods was treated as proved where recoveries from the factory and residence, seizure of raw materials and packed pouches, unaccounted production entries in a diary, and statements of connected persons and suppliers mutually corroborated each other. Admissions regarding raw materials for gutkha manufacture, operation of machinery, and unrecorded production supported the conclusion that goods were cleared without being reflected in statutory records. On that basis, suppression and intent to evade duty were found established, and the duty demand and confiscation were upheld.

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Issues: Whether the evidence on record established clandestine manufacture and clearance of excisable goods without payment of duty, and whether the orders confirming demand and confiscation called for interference.

Analysis: The recoveries from the factory and residential , the seizure of raw materials and packed pouches, the diary showing unaccounted production, and the statements recorded from the concerned persons and suppliers were treated as mutually corroborative. The admissions regarding possession of raw materials for gutkha manufacture, the functioning of the machines, and the unrecorded production supported the finding that goods were manufactured and cleared clandestinely without accounting them in the statutory records. On that basis, the allegations of suppression and intent to evade duty stood proved.

Conclusion: The finding of clandestine manufacture and removal was sustained and the orders of confiscation and duty liability were upheld against the assessee.

Ratio Decidendi: Where clandestine manufacture and clearance are admitted and corroborated by seized records, recoveries, and statements of connected persons and suppliers, the adjudication confirming duty liability and confiscation does not warrant interference.

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