2022 (5) TMI 649

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....day today activities and particularly looks after the sale and purchase and liaisoning. The appellant is registered with the department. In the course of search in the premises of another manufacturer, namely, Pankaj Ispat Limited, which was conducted on 12th April, 2012, there appeared certain discrepancies like shortage of 1066.615 MT of MS ingots, 9.695 MT TMT bar and 219.56 MT sponge iron. The search in the said premises resulted in recovery of several incriminating documents showing unaccounted purchase and sale of finished goods. 2. In the course of search in the premises of Pankaj Ispat, the statement of its director Mr. Pankaj Agarwal was recorded, wherein he inter alia stated that the records recovered under panchanama contained....

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....nt of Shri Raj Kishore Das, accountant and authorised signatory of Pankaj Ispat, accordingly as per the records of Pankaj Ispat, it appeared that this appellant/ SR ingots have clandestinely cleared 806.506 MT of MS ingots during the said period clandestinely, without paying duty. 3. To verify facts, Revenue issued summons to the appellant to produce relevant documents and to submit oral evidence, but the summons were returned with remark-factory is closed. Accordingly, based on the evidences collected at the end of Pankaj Ispat, Revenue issued show cause notice dated 1 July, 2015 on these appellants, alleging clandestine removal by them to Pankaj Ispat of 806.576 MT ingots, the value worked out at Rs. 2,20,75,524/- and the duty allegedl....

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....his Tribunal in similar facts and circumstances in the case of Ramniwas Ispat pvt Ltd. and ors. vs. CCE, Raipur vide Final Order No. 52254- 52255/2018 dated 19.06.2018 under similar facts and circumstances of alleged clandestine clearance to Pankaj Ispat, have allowed the appeal holding that demand and penalty is not sustainable on the basis of the third party evidence, in absence of any corroborative evidence/ admission on the part of the assessee. 7. Learned counsel also states that, the Revenue have failed to examine its witness in the adjudication proceedings and thus for the absence of compliance of the mandate of Section 9D of the Act, the demand raised relying on the statement of Director of Pankaj Ispat is not tenable, and is fit....