TaxTMI 
TaxTMI 
2018 (1) TMI 988
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.... brief facts of the case are that M/s.Nutan Ispat and Power Ltd. were engaged in the manufacture of Sponge Iron, M.S. Ingots and re-rolled products like angles, channels, beams, etc. M/s. Indo Lahari Bio-Power Ltd. were also engaged in the manufacture of M.S. Ingots and their business was merged with M/s.Nutan Ispat on 1.12.2010. Based on certain information that the appellants are not discharging proper central excise duty and have indulged in unaccounted clandestine clearance of excisable goods, certain verifications were conducted by the central excise officers in December, 2011. Business and residential premises connected with the appellants were searched and stock taking was conducted of the raw materials and excisable goods and variou....
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.... (d) The names of seller of raw materials and buyers of finished goods were also mentioned in the private record, which was relied upon by the department. No verification with any of these sellers /buyers have been carried out by the Revenue. Similarly, no effort was made to contact the transporters to substantiate the allegation of clandestine clearance. (e) M.S. ingots were made from sponge iron and some scrap. The sponge iron in turn is manufactured from iron ore. Each of this process involve certain percentage of loss. The allegation of clandestine manufacture and clearance of 6554 MT of M.S. Ingots is factually not tenable. The said manufacture would require at least 7335 MTs. of sponge iron as per the percentage calculati....
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....S. Sarma was working as Director of the main appellant. The note books containing details of finished goods sold and payment received, raw materials purchased and payment. These records were maintained by Shri Sharma as per the directions of Shri Pradeep Agarwal, Director of the main appellant. 4. Ld. AR submitted that large number of entries in the private records tallied with entries in the statutory records. This indicates the admissibility of private records to form basis of clandestine unaccounted clearance wherever, the entries were not tallied with the statutory records. Ld. AR relied on the various decided cases to submit that unretracted confessional statement and private records, which were not disputed and form basis of confir....
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....boration about the reliability of such private records. If all statements and deposition during the cross examination are admittedly voluntarily made, preference for one statement ignoring other such statement and deposition during the cross examination, can be made when supported with due corroboration. 8. One other important legal issue raised by the appellant is regarding confirmation of duty demand against two appellants jointly and severally. We find that such course of action is not legally sustainable. For short payment of central excise duty, the assessee, who is liable to pay such duty has to be identified and duty demand confirmed. 9. In Golden Tobacco - 2015 (317) ELT 164 (Tribunal-Delhi), the Tribunal observed as below:- ....