Clandestine manufacture proved by seized records, as unreconciled entries supported duty demand, penalty and confiscation.

Seized private and official records were treated as sufficient evidence of clandestine biscuit manufacture and removal where they showed raw material procurement, production figures and sales not reflected in statutory records. The Tribunal found the entries consistent with the brands manufactured by the assessee, and the assessee failed to rebut them or show that they related to another unit. On that cumulative evidentiary basis, the alleged unaccounted manufacture and clearance were established, and the duty demand, penalty and confiscation were sustained.

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Issues: Whether the evidence from seized private and official records established clandestine manufacture and removal of biscuits, and justified the demand of duty, penalty and confiscation.

Analysis: The Revenue relied on records recovered from the factory and residential of the partners showing procurement of raw materials, production figures and actual sales which were not reflected in the statutory records. The appellants failed to rebut those entries or to show that the documents related to some other biscuit unit. The Tribunal found that the documents matched the brands manufactured by the appellants and that the evidence cumulatively established unaccounted manufacture and clearance. The Tribunal also held that the decisions cited for want of sufficient evidence were distinguishable on facts.

Conclusion: The charges of clandestine manufacture and removal were held established, and the duty demand, penalty and confiscation were sustained against the assessee.

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