2018 (5) TMI 1659

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....tigations at the end of one M/s Monu Steels, which is a commission agent and based upon the documents recovered from his possession entertained a belief that he has supplied the raw material to the present appellant, which further stands converted by them into their final product, ultimately cleared without payment of duty. Accordingly, proceedings were initiated against the appellant proposing confirmation of demand to the tune of around Rs. 4.73 crores, which were also based upon the consumption of electricity. In the first order passed by Commissioner (Appeals) the entire demand was confirmed and the order was challenged before the Tribunal, who vide their order referred above remanded the matter with the following directions: "6. In th....

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....oduction of corroborative evidence, the adjudicating authority has again relied upon the entries made in the records of Monu Steels. In any case, he submits that the entries are in the nature of third party records cannot be adopted for arriving at a finding of the clandestine removal against the assessee, in the absence of any further investigations by the Revenue and in the absence of any corroborative evidence. He relies upon various decisions of the Tribunal wherein the same entries made in the records of M/s Monu Steels were hold as not sufficient for upholding the charge of clandestine removal. 5. After hearing the ld. AR and after going through the impugned order, I agree with the ld. Advocate that the directions contained in the Tr....

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....removal. Even the statement of the Director admitting such removal was held to be insufficient in the absence of any other corroborative evidences indicating clandestine activities. Further, the Tribunal in the case of CCE & ST, Raipur Vs. P.D. Industries Pvt. Ltd. - 2016 (340) ELT 249 (Tribunal-Delhi) held that the allegations based on inquiries made in the third party's documents of Commission Agent and transporters cannot lead to the fact of clandestine activities. In fact, the list is un-ending and it is almost a settled law that the allegations of clandestine removal cannot be upheld based upon the third party's records without there being any evidence reflecting upon such clandestine activities. 6. In the present case, the entire end....