Clandestine removal requires full appraisal of records and defence evidence; matter remanded for fresh consideration.

Allegations of clandestine removal, confiscation, penalty, and duty demand required a full appraisal of contemporaneous records and defence evidence. The record indicated that the goods had been loaded, the vehicle later developed engine trouble, and it was intercepted during a trial run after repair, with supporting statements from security staff and the general manager explaining the absence of a gate pass and debit entry. Because the finding of intent to evade duty was not reached on proper consideration of the surrounding material, the impugned order was set aside and the matter was remanded for de novo consideration after hearing the appellants.

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Issues: Whether the confiscation, penalty, and duty demand were sustainable on the allegation of clandestine removal without payment of duty, or whether the matter required fresh consideration in view of the defence that the vehicle was only on a trial run after repair and that the relevant documents had been prepared but not issued.

Analysis: The record showed that the goods had been loaded and the vehicle developed engine trouble, after which the driver went to rectify the fault and the vehicle was intercepted during a trial run. The statements of the security staff and general manager supported this version and also explained why the gate pass was not ultimately issued and why the debit entry had not been made at that stage. The finding of clandestine removal was not supported by a proper appreciation of the defence evidence or the registers, and intent to evade duty could not be inferred merely from the seizure and loose-sheet entries without examining the surrounding material.

Conclusion: The impugned order was set aside and the matter was remanded for de novo consideration after giving the appellants an opportunity of hearing.

Ratio Decidendi: Allegations of clandestine removal and intent to evade duty must be determined on a full appraisal of the contemporaneous records and defence evidence, and a remand is warranted where such material has not been properly considered.

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