Clandestine removal proved by private records and parallel invoices, with duty, interest and penalties sustained.

Recovered private records, parallel invoices, weighment slips, transport documents and a director's statement were treated as mutually corroborative evidence of clandestine removal of cement without payment of duty. The defence that the cash book was merely a composite personal account, and that further enquiry with buyers or transporters was needed, was rejected because the documentary trail linked the goods to the appellants' unit. The claim that the sister unit was operational also failed in view of inspection findings showing no manufacturing activity. The finding of clandestine clearance was upheld, and the duty, interest and penalties were sustained.

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Issues: Whether the demand of central excise duty, interest and penalty arising from alleged clandestine clearance of cement without payment of duty was sustainable on the basis of recovered private records, parallel invoices, weighment slips and the director's statement.

Analysis: The recovered cash books, party-wise registers, parallel invoices, weighment slips and connected transport documents were treated as mutually corroborative evidence showing unrecorded clearances of cement from the appellants' premises. The defence that the cash book was only a composite personal account and that further enquiry with customers or transporters was necessary was rejected because the documentary trail itself linked the goods to the appellants' unit. The plea that the sister unit was operational was also found unconvincing in view of the visit report showing disconnected electricity, absence of a DG set, rusted machinery and no manufacturing activity. The director's voluntary statement admitting maintenance of parallel invoices for clearance without payment of duty further supported the departmental case.

Conclusion: The finding of clandestine removal was upheld and the demand, interest and penalties were sustained against the appellants.

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