Clandestine removal evidence sustained through computer data, third-party records and statements, restoring duty, interest and penalties.

Seized computer records, including a separate account in the "Games" file, a third-party CD and supporting statements were treated as mutually corroborative evidence of unaccounted clearances of processed fabrics without payment of central excise duty. The record was found sufficient to show a modus operandi of suppression and clandestine removal, and the appellate authority was said to have overlooked the incriminating material and the corroborative chain. On that basis, the adjudication findings confirming duty, interest and penalties were restored, and the Commissioner (Appeals) order was set aside.

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Issues: Whether the assessee had clandestinely removed excisable goods on the basis of computer records, seized data and allied evidence, warranting confirmation of duty, interest and penalties, and whether the Commissioner (Appeals) was justified in setting aside the adjudication order.

Analysis: The seized computer data, the separate account stored in the "Games" file, the CD recovered from a third party, and the supporting statements were treated as reliable and mutually corroborative material showing unaccounted clearances of processed fabrics without payment of central excise duty. The evidence was found to establish the modus operandi of suppression and clandestine removal, and the appellate authority was held to have ignored the incriminating record and the chain of corroboration. On that basis, the adjudication findings confirming duty, interest and penalties were restored.

Conclusion: The issue was decided against the assessee and in favour of the Revenue; the order of the Commissioner (Appeals) was set aside and the adjudication demand and penalties were sustained.

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