TaxTMI 
TaxTMI 
2003 (7) TMI 130
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....reful consideration to the facts and circumstances of the case and the submissions made in the ground of appeal. Shri Rajkumar Appasamy, Advocate appeared for personal hearing and reiterated the submissions made in the appeal. I take both the appeals together for passing a common order. M/s. Madras Suspension Ltd. is manufacturing leaves and assembly falling under chapter Heading 7320 of the CETA, 85. The company has 3 units. Unit-I and III in Madurai and Unit II at Karnataka. Only Unit-III is at present functioning. Unit-I stopped production on 21-10-1998. The distance between Unit-I and III is around 10 kms. There is no other evidence adduced by the department other than the chits/notes. No statement is recorded from the security who main....
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....atement from security staff statement from transporter, buyer, discrepancy in stock of modvated inputs and physical stock. The demand based on clandestine removal based on chit/note is not sustainable. Reliance placed on the following judgments 2001 (130) E.L.T. 344 in the case of MTK Gurusamy. It has been held that Demand clandestine removal - private note book maintained by a part time employee containing unauthenticated entries and over writings not to be relied on for establishing clandestine removal in absence of any corroboration in the form of seizure of goods or invoice or purchase of raw materials, etc. "1989 (39) E.L.T. 655 (T) in the case of Kashmir Vanaspathi (P) Ltd. wherein it has been held that demand - clandestine removal - ....
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.... are required to be confirmed. It is stated that the Commissioner (Appeals) has erred in not confirming the demands and hence this appeal. 3. Heard ld. DR, Shri P. Devaladu who took me through the entire record and both the impugned orders and submitted that there are clear admissions made by the assessee and the staff and based on the private chits and therefore the demands are required to be confirmed. 4. Shri Rajkumar Appa Swamy, Advocate contended that in the cited case, the Tribunal had noticed the evidence of clandestine manufacture and removal of goods. There was shortage in the physical stock of the raw materials and that shortage was not explained. They also found inputs in other places than the notified place. There were several....
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.... found by the revenue with regard to receipt of inputs, place from where inputs are purchased, nor there is shortage of inputs as per RG I register, electricity consumption have not been challenged to show that there was excess consumption. The Tribunal in large number of judgments have held that for confirmation of demands there has to be purchase of inputs, excess utilisation of power consumption, shortage of raw materials in terms of entries made in RG I register, sale of final product clandestinely, evidence of transport, etc., to establish the production of sale of final goods. In the present case no such evidence has been placed on record. Therefore, the Commissioner (Appeals) after due consideration found that there was no evidence o....