2004 (9) TMI 249

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....r (Appeals) are, Rs. 1,85,792/- on account of removal of the goods by the appellants without payment of duty in a clandestine manner, Rs. 73,277/- also on account of the clandestine removal of the goods without payment of duty by the appellants and Rs. 90,224/- on account of non-accountal of the raw materials by the appellants at the time of the visit of the Central Excise Officers. 4. So far as duty confirmation of Rs. 73,277/- against the appellants is concerned, the same has not been contested by the Counsel for appellants before us. Therefore, the impugned order in this respect is upheld. 5. Regarding the confirmation of duty of Rs. 1,85,792/-, ld. Counsel has contended that the same has been based on the challans detailed at Sl. ....

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....ot by his firms, could not be accepted as true. He made this statement with a view to avoid his own liability for payment of duty in respect of those goods. He has not explained in his statement as to how and under what circumstances, the challans of his firms came in the hands of the appellants. He has not produced any document to corroborate his statement in that regard. He is running two firms named above and his employee, Rajeev Kapoor had admitted the clearance of the goods on the basis of the challans in question by these firms and not by the appellants. Therefore, the duty in respect of the goods cleared in a clandestine manner through challans detailed at Sl. Nos. 17 to 27 could not be legally demanded and confirmed against the appe....

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....e Panchnama, which was prepared at the spot it had been recorded that raw material which involved credit of Rs. 90,224/- was not accounted for by the appellants. In the show cause notice, it has been also alleged that the inputs involving credit of this amount were removed by the appellants as such. Therefore, statement of Shri Arvind Agarwal, Partner of the appellant-firm that, raw materials involving this much credit amount, was utilised in the manufacture of the goods which were cleared by them through Sl. Nos. 1 to 16. Once the duty is being confirmed against the appellants in respect of those goods, the amount in question, as a Modvat credit, cannot be recovered from them. After having saddled with the duty amount, for having removed t....