TaxTMI 
TaxTMI 
TaxTMI 
2019 (7) TMI 100
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....812-2007 a search was conducted in the factory premises of M/s Waryam and M/s. V. K. From the premises of M/s. V. K, a black bag with loose papers in the form of weighment slips was recovered from an almirah lying in the premises. These weighment slips were serially numbered and placed in two files Sr. No. 1 to 331 and from Sr. No. 1 to 905. Apart from this, one slip pad, 5 note pads, 2 writing pads, loose pages and 21 cheque books were also recovered. These loose papers were in the form of weighment slips and hand written slips depicting description of the goods, weighment details, vehicle numbers etc. All these documents were resumed. The revenue is of the view that these documents are in respect of clandestine manufacture and clearance of ingots by M/s. Waryam. The statements of various persons were recorded namely Sh. M.K. Gupta, Prop. of M/s. V. K, Sh. Vipin Gupta, Director of M/s Waryam, Sh. Atul Gupta, authorized signatory of M/s Waryam and two buyers, namely, Sh. Kamal Chopra, authorized signatory of M/s. V.G. Steel Industries and Sh. Ajay Jain, partner of M/s. Ajar Amar Steels. With regard to various statements stated that he could not comment on these weighment slips. The....
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....ed that all the statements except the statement of Sh. Kamal Chopra are of exculpatory in nature. As Shri Atul Gupta, Authorized signatory of M/s Waryam clearly explained that these weighment slips were either pertains to internal movement of the ingots within the factory or wherever the quantity manufactured, the same were cleared on payment of duty. He clearly denied having any relationship that weighment slips which according to department indicated clandestine removal on the part of M/s Waryam. Even the major buyer of M/s Waryam, M/s. Ajar Amar Steels clearly denied the goods mentioned in the loose weighment slips and hand written slips having been received in their premises. Only Sh. Kamal Chopra accepted that they have received a meager quantity of 249.985 MTs on the basis of the said weighment slips out of the total quantity of 4000 MT. M/s Waryam has asked for the cross examination of the said Sh. Kamal Chopra which was denied by the Adjudicating Authority and same is in violation of the provisions of Section 9-D of the Central Excise Act, 1944. As the statement of Shri Kamal Chopra was not examined of chief and thereafter opportunity of cross examination is also not ....
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.... authority that M/s Waryam was engaged in the activity of clandestine manufacture and removal of goods. Consequently, the duty is rightly demanded and penalties are rightly imposed on the appellants. 7. Heard the parties and considered the submissions. 8. On careful consideration of submission made by both sides, we find that the case of the revenue is based on the loose slips recovered during the course of investigation on 18.12.2007 in the premises of M/s V. K. No discrepancy in statutory records/stocks in the premises of M/s waryam was found. On the basis of these loose slips recovered from M/s V. K., it has been alleged that weighment slips pertains to M/s Waryam on same investigation, some of the slips were found by the revenue pertains to M/s V. K. and the case of clandestine clearance of dutiable goods was made out against M/s V. K. and the said show cause notice was adjudicated, thereafter, the matter travelled up to this Tribunal and this Tribunal vide Final Order No. 60336-60344/2017 dated 28.02.2017 observed as under:- "6. On careful consideration of the submissions made by both sides, I find that to establish clandestine ....
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....iscrepancy either in the stock of the raw material/inputs/packing goods or in the final product was detected by the visiting officers. It is also seen that no incriminating documents, which stand relied upon in the show cause notices were recovered from their premises. The entire case of the Revenue is based upon the prints outs seized from the premises of M/s.BES, which is a third party premises. It is well settled law that the documents recovered from the premises of the third parties are required to be dealt with, with a caution and requires further corroboration in the shape of the evidences directly related to the manufacturing units in question. Reference can be made to the Tribunal decision in the case of Rama Shyam Papers Ltd. vs. CCE, Lucknow reported as 2004 (168) ELT 494 (Tri. Del.) wherein it was observed that the records seized from third party premises cannot be made the sole basis for upholding the findings of the clandestine removal, even if it is proved that the assessee was having business relationship with that party. Similarly in the majority decision of the Tribunal in the case of Kuber Tobacco Products Ltd. v. CCE, delhi [2013 (290) ELT 545 (Tri.-Del.....