Clandestine Sponge Iron manufacture alleged - undervaluation demand based on seized docs - MD penalty & 18,156.96 MT confiscation set aside.

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....Clandestine manufacture and clearance of Sponge Iron alleged - undervaluation demand calculated based on seized documents - retraction of statements - Section 9D of Central Excise Act, 1944 not followed - penalty on Managing Director set aside - 18,156.96 MT Sponge Iron confiscation set aside. Seized documents cannot be relied upon without establishing author's identity as per Section 36A. Statements alone insufficient to prove clandestine removal without corroborative evidence like unaccounted raw materials, stock discrepancies, seizures en route, excess electricity consumption, evidence of transporters/buyers and fund flow. Demands unsustainable without mandatory examination u/s 9D. Impugned order set aside, appeal allowed.....