Clandestine removal requires independent corroboration; private diary and transporter entries alone were insufficient to prove duty evasion.

Clandestine removal of finished goods could not be sustained on the basis of private diary entries and transporter registers alone. The Tribunal found that the Revenue produced no independent corroboration such as evidence of raw material consumption, actual manufacture, sale proceeds, seizure of goods, or admissions from buyers, transporters, or the persons concerned. The relied-upon records were treated as uncorroborated private documents and therefore insufficient to establish unauthorised clearance without duty. The demand was dropped, and the assessee's position was upheld.

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Issues: Whether the charge of clandestine removal of finished goods could be sustained solely on the basis of entries in a private diary ledger and transporter registers without independent corroborative evidence.

Analysis: The entries relied upon by the Revenue were found in a diary recovered from an employee and in transporter registers. The Tribunal noted that no admission by the persons concerned established that the quantities mentioned in those records had been removed without payment of duty, and no corroborative material such as evidence of raw material consumption, actual manufacture, sale of goods, receipt of money, seizure of goods, or supporting admissions from buyers or transporters was produced. On the facts, the relied-upon records were treated as uncorroborated private documents, which by themselves were held insufficient to prove clandestine removal.

Conclusion: The charge of clandestine removal was not proved; the order dropping the demand was upheld.

Final Conclusion: The Revenue's appeal failed and the finding in favour of the assessee was sustained because the alleged evasion was not established on the basis of uncorroborated private entries.

Ratio Decidendi: Clandestine removal cannot be sustained merely on the basis of private records or transporter entries unless supported by independent corroborative evidence establishing unauthorised manufacture and clearance.

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