TaxTMI 
TaxTMI 
2018 (2) TMI 1437
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.... from the table of Shri M.Penchal Naidu, Executive Secretary to the CEO, Sh.Gautam Reddy of respondent company. These papers made upto a file Miscellaneous file , contained details of daily inward/outward materials report for 17.8.2005 and production reports of MS Ingots and CTD/TMT Bars for 13.8.2005, 14.8.2005, and 17.8.2005. Statements of Sh.Penchal Naidu, Sh.M.Seetha Rama Reddy, General Manager and Sh.G.Gautam Reddy, CEO was recorded. It appeared to the Revenue that respondent resorted to clandestine manufacture and clearance of MS Ingots, CTD/TMT Bars and mis-rolls without payment of duty. Show Cause Notice was issued proposing to recover duty demand to the tune of Rs. 23,70,784/- alongwith interest and also for imposing penalties. Aft....
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.... able to find out any discrepancy in the statutory records maintained as per law. So also there was no physical stock taking of raw material or finished goods done by department to conclude that excess raw material than that has been accounted has been received in the factory or excess finished products has been cleared by respondent. The department has no case that there was shortage of inputs/raw materials. ii. Though it is alleged that appellant cleared excess quantity of finished products, clandestinely, without payments of duty, the department has not adduced any evidence as to who are these buyers and how such goods were transported. There is no evidence for paying freight charges to transporters for removal of such huge exce....
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....other two years as seen from statement of Sh.M.Seetharama Reddy which was recorded on 15.12.2005 and again on 25.4.2006. Still, the department has not made any investigation as to whether respondent had procured excess unaccounted inputs, or details of suppliers who have supplied unaccounted inputs/raw material for alleged unaccounted manufacture of finished products. Again, there is no evidence as to who are the buyers to whom such unaccounted finished products were sold by respondent. There is no evidence of any transporters for receiving unaccounted input or clearance of unaccounted finished product. There is no supporting electricity consumption details to show that there was excess manufacture. There is no details forthcoming for recei....
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.... not accounted in order to suppress production. No evidence regarding receipt of raw material to produce the alleged excess quantity has been shown. There is no evidence regarding the payment received by the appellants in respect of quantities alleged to have been supplied. No evidence has been adduced regarding payment made by the buyers to the appellants. No corroborative evidence has been adduced so as to establish transportation by way of lorry receipts, octroi entry, payment made to transporter etc. No evidence has been adduced to establish the disposal of manufactured goods received by the buyers. It is the burden of the Revenue to prove that the appellants had manufactured and removed goods clandestinely". 7. As already stated apa....