2017 (7) TMI 277

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....d in the manufacture of low and medium carbon ferro alloys, liable to central excise duty. Shri S.C.L. Gupta (second appellant) is the Director of the first appellant company. M/s. Naman Alloys (P) Ltd. (third party) are engaged in the manufacture of Ferro Alloys and was a regular customer of appellant no.1. The central excise officers conducted certain verification of records in the premises of M/s. Bajrang Transport Service, Raipur in October, 2007. Upon verification of a register recovered there, the Revenue entertained a view that the main appellant indulged in unaccounted clearance of excisable goods. On conclusion of the investigation, a show cause notice dated 6.10.2010 was issued to recover the short paid central excise duty and to ....

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....s of the appellant or M/s. Naman Alloys. No case of clandestine removal can be established based on certain private records seized from a third party, without any corroborative evidence. The statement of proprietor and Manager of Transport Firm did not indicate any involvement of appellant in clearing the goods without payment of duty. There is no admission regarding the transporter involvement in transporting the goods from the premises of the appellant. Further, no statement was recorded from the proprietor of M/s. Naman Alloys Pvt. Ltd. (e) As per the practice in the transport operation, sometimes, the truck is sent by transporter for loading. However, the same is returned without loading due to various reasons. However, the entry mad....

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....nloading, filled, empty, rate, charges, diesel, expenses. We find that in respect of these four disputed entries, the details with reference to date, loading (Moonlight), unloading (Naman Alloys) are given. In none of the entries including these four entries, the details/nature of goods loaded are mentioned. The demand against the main appellant is apparently for both - Ferro Titanium and Ferro Molybdenum. We note that Ferro Tatanium is having a value of Rs. 69 per kg., whereas Ferro Molybdenum is Rs. 2050 per kg. We are not clear as to how the product, which is cleared unaccounted, has been identified, to arrive at the duty liability. The show cause notice did not elaborate as to how the exact nature (Ferro Titanium /Molybdenum) of unaccou....