2017 (11) TMI 990

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....ent of the matter, and proceed to hear the Revenue s appeal on the basis of the records. 3. The respondent is engaged in the manufacture of gutkha and Central Excise Officers seized the respondents branded gutkha from four different places. Inasmuch as the owner of the said place, could not produce the requisite duty paid documents in respect of the said seized gutkha, Revenue entertained a view that the same was cleared clandestinely by the respondent manufacturer. Accordingly, proceedings were initiated resulting in passing of an order by the original adjudicating authority confiscating the seized goods, confirming demand of duty and imposition of penalty. 4. The said of the original adjudicating authority was put to challenge by th....

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....e appellant that if appellant had clandestinely cleared such huge quantity of finished goods on 15.03.07 which were seized at different locations then there must be shortage of finished goods then the recorded balance of the appellant. It is not the instant case contrary to department s findings. A negligible quantity of finished goods (191 bundle valued at Rs. 11460/-) were found in excess then the recorded balance of appellant. The cases of clandestine removal should also been supported by cash flow. It is on the record that 27.80 lacs were seized during search considering it sale proceed of clandestinely removed goods. However during the course of investigation the appellant explained the possession of cash with documentary evid....