2003 (11) TMI 146

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....earing. Shri S. Kandasamy, Consultant appeared for personal hearing. The learned Consultant pleaded for allowing the appeal. Merely on the unsigned sheets of papers in which some Kgs., of yarn is written it cannot be construed that it was clandestine manufacture and removal. No goods were seized. The documents seized did not reflect the correct picture. There is no corroboration to each other. Such private records are not reliable. There are no corroborative evidences to the effect to whom the goods manufactured without accounting as alleged in the order has been sold, from where the raw materials has been purchased etc. In this case the adjudicating authority records that the details have been made properly and kept in the file captioned 1....

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....Tribunal has held that since the actual stock tallied with entries in RG-1 entries and the allegations of excess and unaccounted production has been based only on the note book found from appellants premises, authenticity of which has not been proved and thereby the unrecorded production and clandestine removal has not been proved in the absence of any other evidence. In the case of Kashmir Vanaspathi (P) Ltd., reported in 1989 (39) E.L.T. 655 (T) and Krishna & Co., reported in 1998 (97) E.L.T. 74 (T), it was held that clandestine removal should not be based solely on the private diary but there has to be sufficient corroboration. In the case of Metal Fittings Pvt. Ltd., reported in 1997 (93) E.L.T. 747 (T), it was held that in diary and le....

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....of clandestine removal. It is stated that the documents in the notebook contains the details of clandestine removal. Reliance is placed on the Statement of Shri P.K. Natarajan, M.D., who admitted to these documents. 3. I have heard Shri Mani and the learned Counsel Shri V. Balasubramanian. On a careful consideration of the submissions and perusal of the record, I note that the case has been built on the basis of the seized notebook and the file. There is no evidence of the assessee committing the offence of removal of goods clandestinely. There is no evidence of use of inputs to prove that there was manufacture of product. There is no evidence of clearance of final goods without payment of duty. There is no statement to show as to from w....