Clandestine removal allegations fail without voluntary statements and independent corroboration of goods cleared outside the books.

Clandestine removal of excisable goods must be proved by reliable evidence, and a recorded statement alone is insufficient where its voluntariness is not established and no independent corroboration exists. The adjudicating and appellate authorities found that the managerial signatory's statement was not shown to be voluntary, and the records did not identify buyers, suppliers, or other material proving removal outside the books. In the absence of supporting evidence, the allegation of clandestine clearance failed to meet the required standard of proof, and the issue was decided in favour of the assessee.

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Issues: Whether the Revenue had established clandestine removal of excisable goods on the basis of the recorded statement and surrounding material.

Analysis: The only substantive basis for the allegation was the statement of the managerial signatory, but both the adjudicating authority and the appellate authority found that the statement was not shown to be voluntary and was not supported by any independent corroboration. The available records did not identify buyers, suppliers, or other evidence sufficient to prove removal of goods outside the books. In the absence of corroborative evidence, the allegation of clandestine removal was not proved to the required standard.

Conclusion: The issue was decided against the Revenue and in favour of the assessee.

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