TaxTMI 
TaxTMI 
2014 (7) TMI 314
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....ars amounting to 2680.807 MTs during the period 19-7-2004 to 29-4-2007. The fact of suppression of production and clandestine removal was evident from the private records maintained by the assessees and the purchases of raw materials for manufacture and supply of finished goods without payment of duty were also corroborated by the raw material suppliers and buyers of finished products. Based on these evidences a show cause notice dated 8-12-2008 was issued demanding Central Excise duty of Rs. 1,18,10,204/- from ARMPL and a duty of Rs. 42,64,882/- from RIMPL along with interest thereon and also proposing to impose penalties on the appellant firms as also the Directors Shri Ramdas Shivram Sangle and Shri Sharad Ramdas Sangle. The notice was adjudicated vide the impugned order and demands were confirmed along with interest thereon and also imposing equivalent amount of penalties. A penalty of Rs. 10.00 lakhs was imposed on Shri Ramdas Shivram Sangle, who was the Director of RIMPL and a penalty of Rs. 1.00 lakh was imposed on Shri Sharad Ramdas Sangle, Proprietor of M/s. Ambica Scrap Merchant, Ahmednagar who aided/assisted in the disposal of finished goods without payment of duty. Aggr....
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....d - 2005 (191) E.L.T. 856 (Tri.-Bang.) wherein it has been held that private registers maintained cannot be the sole basis for establishing clandestine removal, in the absence of corroborative evidence like clandestine purchase of raw materials, excess use of electricity, etc. 3.3 It is further submitted by the ld. counsel that while computing the duty demand, the consideration received should be treated as cum-duty and the assessee is entitled to computation of duty demand on commutative basis and relies on the decision of this Tribunal in the case of CCE, Ahmedabad v. Uday Auxichem - 2012 (275) E.L.T. 565 (Tri.-Ahmd.). In view of the above, the ld. counsel prays for setting aside the impugned order. 4. The ld. Additional Commissioner (AR) appearing for the Revenue submits that in this case no prejudice has been caused to the appellants by refusing the cross-examination of Shri Pandurang V. Thorve and Shri Ashok Kumar Yadav, inasmuch as the entries made in the private records by the above persons have been corroborated by the Directors of these firms. Further, the buyers of the goods have confirmed that they have purchased these goods without payment of duty from t....
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....its basis believe in the existence of the facts in issue". 4.2 The ld. AR also relies on the decision of this Tribunal in the case of Eastern Silk Industries Ltd. v. CC, Bangalore - 2011 (274) E.L.T. 106 (Tri.-Bang.) wherein it has been held that confessional statement, if not retracted, can be relied upon. Similarly, the Hon'ble Supreme Court in the case of Surjeet Singh Chhabra v. UOI - 1997 (89) E.L.T. 646 (S.C.) has held that confessional statement recorded before the Customs Officer is admissible and binding since Customs Officers are not Police Officers. He further submits that the adjudicating authority has given a detailed finding in the impugned order examining the various entries made in the private note books and their corroboration with the manufacture and clandestine removal of finished products. Therefore, he submits that the impugned order is sustainable in law. He also relies on the decision of the Hon'ble Apex Court in the case of Amrit Agro Industries Ltd. v. CCE, Ghaziabad - 2007 (210) E.L.T. 183 (S.C.) wherein it was held that unless it is shown by the manufacturer that the price of the goods includes excise duty payable by him, no question of exclusion ....
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....is not necessary. In view of the above we hold that the denial of cross-examination of Shri Thorve and Ashok Kumar Yadav who maintained the private records has not caused any prejudice to the appellants. 5.2 As regards the allegation of clandestine manufacture and removal of MS Ingots and MS bars by the appellants, the private records maintained by the appellants clearly show purchase of raw materials, production of finished goods and clearance of the same without issue of bills and receipts in cash. These transactions are corroborated by the entries in the private records, the journals and ledgers and sales invoices. Both Shri P.V. Thorve, the clerk and Shri Ashok Kumar Yadav, the Central Excise in-charge of the appellant firms have also clearly admitted that the entries made indicating as 'without bills', relate to unaccounted production and clearance without payment of duty. The statements of Shri Ramdas Shivram Sangle, Director of RIMPL and ARML and Shri Sharad Ramdas Sangle, Proprietor of M/s. Ambica Scrap Merchant also clearly show that the entries made in the private records as without bills refers to unaccounted production, removal without payment of duty for which ....