1999 (11) TMI 759

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....of IC covers and clearance as fresh cassettes in the guise of cassettes received for re-conditioning under Rule 173H and returned back in terms of Rule 9(2) read with Section 11A(1) of the CE Act, 1944 2. The above duty quantification includes duty leviable on 2347 cassettes of M/s. Sound & Vision and 600 cassettes of M/s. Cassette Reck, both of Bangalore, ordered for confiscation and released on redemption fine. 3. Penalty of Rs. 20,000/- under Rule 173Q has been ordered. There is also an order for confiscation of 2347 cassettes unaccounted for and non duty paid coney brand cassettes, valued at Rs 32,585/- seized from the premises of the appellants under Rule, 173Q of the CE Rules. The same had been released on payment of fine ....

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.... of purchase of raw materials, excess production and clandestine removal and cannot base the case solely on the basis of mere statements recorded from the dealers. The learned Counsel submits that the evidence relied upon by the Collector in the order is vague and not conclusive to prove the quantum of clearances for the purpose of computing duty. He relied upon large number of judgments where the law of clandestine removals has been laid down by the Tribunal. Therefore, he prays for setting aside the order for lack of evidence in the matter. 7. Shri S. Sankaravadivelu, learned DR took us through the evidence on record and points out that evidence is conclusive in nature. Findings given by the Collector are not based on evasive or sha....

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....mission that for the purpose of taxation terminology they have written duly rectified and returned". In view of this clear admission confirmation of demand on this aspect by the Collector cannot be challenged and the same is upheld. 9. The Collector has clearly discussed the evidence pertaining to seized cassettes from the dealers which had been manufactured and supplied by the appellants without payment of duty. The seized quantity were 86,3773 cassettes from eight dealers. All the eight dealers except two had admitted in their statements about the supply of these cassettes in the guise of IC covers. Only two dealers i.e. Shri Mutheraja, and Shri V.M. Suresh of M/s Cassette Rek Bangalore had retracted their statements belatedly. Othe....

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....CE Act, is valid and admissible piece of evidence and particularly when it is not retracted. Therefore, he held that statements of eight dealers with regard to clearance and receipt of 86,373 cassettes without payment of duty is sufficient to conclude case. He has noted that out of these 6000 cassettes which had been seized from Shri VM Suresh of M/s. Cassettes Rek and he did not chose to retract the statement till he filed reply to the show cause notice. Even Shri Muthreja of M/s. Sound Vision had admitted in his statement dated 22-2-83 about receipt of cassettes from the appellants in excess of the quantity invoiced as well as under the guise of IC covers and did not choose to retract the same till lapse of considerable period of time eve....