Contemporaneous records and statements can prove clandestine removal when they show unbilled clearances and off-record cash dealings.

Contemporaneous seized records, corroborative statements and surrounding circumstances can establish clandestine removal where they consistently show unbilled clearances, off-record dealings and cash payments. In the described CESTAT New Delhi matter, a diary, kachcha parchies and a notebook recovered from the job worker's premises were treated as sufficient evidence that copper wire rods were removed without bills or vouchers and outside regular excise recordkeeping. The text states that this evidentiary chain supported confirmation of duty, interest and penalties, and that the assessee's conduct in opting to pay duty, interest and penalties for rebate-related benefit also supported the departmental case.

---

---

Issues: Whether clandestine removal of copper wire rods without payment of central excise duty was established, justifying confirmation of duty, interest and penalties.

Analysis: Search proceedings yielded contemporaneous records such as a diary and kachcha parchies showing unbilled clearances of copper rods from the registered unit, while another notebook recovered from the unregistered premises of the job worker recorded receipt of raw material from the assessee. The statements recorded during search supported the departmental case that the goods were being cleared without bills or vouchers and payments were made in cash. The record also showed that the transaction chain was outside the regular excise recordkeeping regime and that the assessee had already opted to pay duty, interest and penalties to avail rebate-related benefit. On these facts, the evidentiary material was treated as sufficient to sustain the finding of clandestine manufacture and removal.

Conclusion: The allegation of clandestine removal was upheld and the duty demand together with consequential penalties was sustained.

Final Conclusion: The appeals failed because the departmental case of unaccounted clearances was accepted on the strength of seized records, statements and surrounding circumstances, leaving no ground to interfere with the impugned order.

Ratio Decidendi: When contemporaneous seized records, corroborative statements and surrounding circumstances consistently show unbilled clearances and off-record dealings, clandestine removal stands proved and the duty demand with consequential penalties is sustainable.

---