TaxTMI 
TaxTMI 
2017 (11) TMI 1387
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....assessee is engaged in the manufacture of MS Ingot and various rolled products of Iron and steel falling under chapter 72 of Central Excise Tariff Act 1985. The department carried out searches on 10/08/2007 at the premises of the following : a. M/s Shri Bajrang Transport Service, (Proprietor Shri Santosh Modi) Janta Complex, Ring Road No. 2, Bhanpuri, Raipur. b. M/s Astha Transport (Proprietor Shri. Danbahadur Singh) In front of Harish Petrol Pump, Bilaspur Road, Raipur. 2. During the search they recovered certain documents from the above two premises, indicating transportation of MS Ingots and Re-rolled products removed from the appellant assessee. The source of the goods was identified as originating from the appellan....
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.... c. In the absence of any corroborative evidence against the appellant, the demand is liable to be set aside. d. The cross examination of the transporters was asked for before the Adjudicating Authority but the same was denied. e. He also relied on the following case laws to support his arguments. i. Goyal Tobacco Co. Pvt. Ltd. Vs CCE & ST Jaipur-I 2017 (348) ELT 720 (Tri. Del.) ii. Continental Cement Company Vs Union of India 2014 (309) ELT 411 (All.) iii. CCE Ahmedabad-II Vs Chhajusingh S. Kanwal 2011 (272) ELT 202 (Guj.) 5. The Ld. DR justified the impugned orders. The statement of the transporters were accepted by the Authorized Signatory in his statements 28/02/2011. None of the s....
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....Authority has further recorded that Shri J.P. Agarwal, Authorized Signatory in this statement before the departmental officers was given after perusing the chart prepared for alleged clandestine clearance. He did not disown the same. The argument of the Revenue is that this amounts to admission and what is admitted is not required to be proved by revenue. 8. The entire allegation of clandestine removal is based on the statements of the transporters as well as the details culled out from the ledgers of the transporters. These documents are evidently third party documents. The revenue has not produced any evidence from the assessee to support the charge of clandestine clearance. It is settled law that documents recovered from the third par....
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.... "12. Further, unless there is clinching evidence of the nature of purchase of raw materials, use of electricity, sale of final products, clandestine removals, the mode and flow back of funds, demands cannot be confirmed solely on the basis of presumptions and assumptions. Clandestine removal is a serious charge against the manufacturer, which is required to be discharged by the Revenue by production of sufficient and tangible evidence. On careful examination, it is found that with regard to alleged removals, the department has not investigated the following aspects: (i.) To find out the excess production details. (ii.) To find out whether the excess raw materials have been purchased. (iii.) To find out the dis....