TaxTMI 
TaxTMI 
2013 (6) TMI 84
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.... No. 2004 of 2005, claiming following substantial questions of law :- "(i) Whether in the facts and circumstances of the case, the Hon'ble Tribunal is correct in not accepting that the entries in the "note book" can be relied upon as evidence of clandestine removal of excisable goods without payment of duty in the light of modus operandi confirmed by corroborative evidence collected by the department as under :- (a) in the form of enquiries conducted from the District Transport Authorities and Municipal Authorities in respect of mentioning of fake registration number of vehicles on Octroi receipts. (b) double clearance on the same set of invoice by changing the time of preparation/removal on the said invoices. (c) confessional s....
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....overed from a room situated near the boundary wall on the day of the visit i.e. 20-5-1996. Statements of some employees of the respondent-company were recorded and after scrutiny of the documents recovered, it was revealed that the respondent had been indulging in the evasion of Central Excise duty in a clandestine manner. It was found that the respondent had clandestinely cleared 2145.030 MT of steel ingots without payment of duty amounting to Rs. 32,64,395/- from 19-1-1996 to 19-5-1996. Accordingly, Show Cause notice dated 1-2-2000, Annexure A.1 was issued to the respondent to show cause as to why Central Excise duty amounting to Rs.32,64,395/- be not recovered from it under Rule 9(2) of the Erstwhile Central Excise Rules, 1944. Interest ....
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....alongwith invoices and the same were delivered to one M/s. Saeco Iron and Steel Mills and the invoices in original, duplicate and triplicate were brought back alongwith empty trucks. This may lead to a suspicion that perhaps the invoices were meant to be used for transportation of the goods once again. Suspicion cannot take the place of evidence. 6.2 The department alleged recovery of private records which were maintained by Shri John Masih/Shri Avtar Singh. How Shri John Masih was concerned with maintaining the heat records of the furnace has not come out during investigation. Shri John Masih was only a kanda incharge. In an affidavit dated 16-9-2002, he had stated that he had no exact knowledge about the production of the goods in the ....
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....show cause notice has been issued nearly after three and half years after the commencement of investigation. If the private records indicate the position as claimed by the department it is a clear case of failure to gather necessary evidence to support the allegation. 6.5 As already mentioned there was no difference in stock found by the officers on the date of visit. The authenticity of documents relied upon and the locus standi of the persons who have explained the documents have not been brought out. There is no admission of unaccounted production and clandestine removal by any of the authorized persons. There is no corroborative evidence relied upon in support of entries in the private records sought to be relied upon especially when....