TaxTMI 
TaxTMI 
2022 (1) TMI 257
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....ng regular compliances. 2. The issue involved in this appeal is whether the respondent commissioner is justified in confirming demand of Rs. 6,54,599/- (including cess) on the alleged clandestine removal and clearance of 218.220 M.T. of M.S. Ingots, on the basis of third party records, being entry in the diary of M/s. Monu Steels (Proprietor, Shri S.K. Pansari), is a broker/ commission agent, who facilitates sales and purchase of Iron and Steel Materials, and also in the records of M/s. Gopal Traders (Proprietor, Shri Gopal Krishna Agarwal) is another broker/commission agent, who facilitates purchase and sales of Iron and steel products. Further, equal amount of penalty was imposed under Section 11 AC along with interest. Another propose....
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....ed the same. I submit that we had not cleared/ removed MS ingots through the said commission agent, without issue of sale invoices or without payment of Central Excise duty. No commission has been paid by us to the said M/s Monu Steels Raipur." 6. The finding of the ld. Commissioner about the statement of Mr. Naren Kumar Mishra at para 6.1 of the impugned order is based upon the mis-interpretation of the following statement, wherein Shri Naren Kumar Mishra on 31.10.2009 stated as under; "I have seen and gone through the relevant records /registered/ diaries recovered by the Central Excise Officer on 15.01.2007 from the premises of M.s Monu Steels (Prop. Shri S. K. Pansari), Commission Agent, Raipur and after seeing the entries p....
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....y liability. Therefore on the basis of the same dairy entry, the department is justified in proceedings against the appellants in the present matter. 11. Since some of the manufacturers, i.e. M/s. Shri Shyam Ingots and Casting Pvt. Ltd. and M/s. Nutan Ispat & Power Pvt. Ltd., Raipur, whose name was also found in the dairy recovered from Sh. S.K. Pansari, Proprietor of M/s. Monu Steel accepted the irregularities and admitted the duty liability, therefore, no corroboration was required in those cases. But in the present case, the appellant did not admit the liability and submitted that the Revenue has not adduced any corroborative evidence to show the movement of the goods from the premises of the appellant to the premises of any buyer(s) ....
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....rging Pvt. Ltd. Vs. CCE, Raipur, 2016-(335) ELT 297 (Tri.-Del.),CCE & ST, Raipur Vs. P.D. Industries Pvt. Ltd.- 2016 (340) ELT 249 (Tri.-Del.) and CCE & ST, Ludhiana Vs. Anand Founders & Engineers- 2016 (331)ELT 340 (P&H) have categorically held that the findings of clandestine removal cannot be upheld based upon the third party documents unless there is clinching evidence of clandestine manufacture and removal of the goods. 15. In an identical matter this Tribunal vide its order dated 04.04.2018 in Appeals Nos. E/50526-50527/2018 - EX(SM) in the case of M/s. Shree Consultant Pvt. Ltd. set aside the demand, which was also made only on the basis of the entries made in the records of M/s Monu Steel and held as under:- xxx xxx xxxx xxx ....
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....anufacture and removal of the goods. In the absence of any corroborative evidence and in view of the law declared in the above decisions, I find no justifiable reasons to uphold the impugned orders. Accordingly, the same are set aside and both the appeals are allowed with consequential relief to the appellants." Similarly this Tribunal in the matter of Excise Appeal No. E/ 50874/ 2018 -Ex [SM] - M/s. Ashok Ispat Udyog Vs. Comm. of C. Ex., CGST, Raipur & Excise Appeal No. E/50812/2018-Ex [SM] - M/s. Vijay Chand Bothra Vs. Comm. of C. Ex., CGST, Raipur set aside the demand since the same was based only upon the diary entries of Sh. S. K. Pansari, Proprietor of M/s. Monu Steel, without there being any corroborative evidence. 16.....