2017 (11) TMI 1096

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....f Central Excise duty on clandestine clearances of finished goods i.e. M.S. ingots. The said allegation was based upon an investigation carried out in the premises of M/s Shilphy Steel Pvt. Ltd. Both the lower authorities have held that the said M/s Shilphy Steel Pvt. Ltd., Managing Director, Shri Agarwal has admitted of clandestine clearances of 205 MTs of sponge iron to main appellant M/s J.S. Forge Pvt. Ltd. Both the lower authorities have come to a conclusion that M/s J.S. Forge Pvt. Ltd. would have converted to said MS ingots and cleared them clandestinely without payment of duty and accordingly demand of Rs. 3,31,703/- has been confirmed along with interest and penalties personal penalty on Shri Soumitra Das. 4. After hearing both ....

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.... excisable products, the investigation stopped. There was no further inquiry or verification regarding transportation, actual manufacture of M.S. Ingots, thereafter M.S. Angles, using such clandestinely procured raw materials. In other words, the whole demand rests only on the admission statement of the Director/partner of the appellant/assessee. In the case relied on by the ld. AR, M/s. S.M. Steel Ropes (supra), there was recovery of delivery challans from the appellant's premises during the investigation. These were corroborated by the statement of the Director, who admitted to the turnover of the company. In the present set of appeals, there is no corroboration of the admission made by the Director/partner of the appellant/assessees. In ....

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....stigation on recording statement. No further verification or evidence was sought to be recovered for the clandestine manufacture, first of M.S. Ingots and thereafter, from M.S. Ingots to M.S. Angles, etc. and thereafter, their unaccounted clearance to various buyers. No verification was made in the appellant's manufacturing unit or in their records. The admission made by the Director or Partners of the appellant/assessees gives a strong indication of the clandestine activity of the appellant/assessee. However, that by itself cannot be a conclusive evidence especially, as the product on which duty is demanded is M.S. Angles and Channels, etc., which are made from M.S. Ingots, which are in turn made from purported clandestinely received spong....