2006 (10) TMI 59

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....t, who has been given the responsibility of maintaining the security of the factory. Revenue has not been able to get any admission from the staff of the appellants with regard to excess manufacture of goods and clearing the same clandestinely without payment of duty. There is no evidence of excess electricity consumption, receipt of excess raw materials and clearances through any transporters. There is also no evidence of any buyer having purchased the goods without payment of duty. The only evidence raised is pertaining to certain registers maintained by the private detective agency who are manning the security gate. 2.This matter was heard in detail at the time of giving waiver of full pre-deposit of duty amount by Stay Order No. 572 & ....

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....ained by the security officer and that should be sufficient to uphold the charge of clandestine removal. 4.These comments of the Commissioner are seriously opposed by the learned Counsel and refers to large number of judgments rendered by the Tribunal on the issue of clandestine removal. He summarises the ratio of the Tribunal judgments inasmuch as the mere private records are not sufficient to proof the clandestine removal. It is his submission that in the present case, the private records are also not relied but the security register maintained by private security agency is relied upon, which cannot be the conclusive evidence. Therefore, there is no preponderance of probability in the present case. He submits that several links in the ci....

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....sioner has not brought in his written comments any clinching evidence to proof the charges of clandestine removal of sugar without payment of duty. For manufacture of sugar, the main ingredients are sugarcane besides certain other ingredients. The records were maintained in terms of RG1 register with regard to receipt of sugarcane. In order to show that there was excess production, the Revenue ought to have brought forthwith evidence pertaining to excess utilization of raw materials or excess manufacture of sugar or excess production of electricity. The Revenue should have also produced evidence of transporters and the purchasers of the final products sugar without payment of duty. There was also no evidence pertaining to flow back of funds....