2026 (2) TMI 1007

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....r the Respondent : Shri H. Nachane, Authorised Representative Appeared ORDER SOMESH ARORA: Both sides agreed that the matter has been decided by lower authorities by considering the evidences uncovered by DGCEI which are substantially similar to the matter of Famous Ceramics Industries and others vs Commissioner of Central Excise & Service Tax-Rajkot as reported in 2025 (11) TMI 1541-Cestat Ahmedabad, which disposed the appeals filed by various ceramic floor and wall tile manufacturers and others related persons who were subjected to penalties, by allowing their appeal. 2. The learned counsel points out that a catena of decisions were considered and evidence appreciated which is similar in their case also as the books of account....

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....tions has admitted that the abbreviations did not provide clue in many cases of follow up investigations, how then same is construed as evidence. Therefore, there is substance in the defence of the appellants, that the names of the appellants and the third party private records are not matching properly and are not decoded by the author of such private records. Line of distinction has to be drawn in this regard, that the record of cash receipts in Axis Bank is a documentary evidence only of fact of some cash coming, but insertion of various abbreviations or scripting which has been done by some one at the end of the Shroff, the same loses evidentiary value and becomes a third party record having no evidentiary value, as the person who scrip....

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....oper corroboration. From the above chain of evidence collected by the department, it is clear that even the aspect of cash receipt by the manufacturers of Morbi etc. who are the present appellants is not free from doubt and cannot be taken to be established by the department. Apart from above, evidences required to sustain charge of clandestine removal involving various aspects such as receipt of unaccounted raw materials and its use for production of unaccounted finished goods including excess consumption of electricity and clandestine removals of such goods and stock discrepancies at the end of the manufacturer or buyers, receipt of cash by the manufacturer and payment link to the buyers through a series of middleman including Shroff, non....