Order date – 10 August 2022

Facts – 

• The appellants Raghuveer Rolling Mills Pvt Ltd are engaged in the manufacture of Iron Flats, spring Leaves and Agriculture implements.
• A show cause notice dated 28.02.2015 was issued against the appellant against clandestine removal of goods, demanding Central Excise duty invoking provision under Section 11A, along with interest and proposing penalty of the Central Excise Act, 1944.
• The Order-in-Original confirmed the duty demanded and imposed equal penalty. On appeal ld. Commissioner vide order dated 16-05-2018 upheld the order of the lower authority and hence, the appellants filed this appeal.

Issue – 

• Whether grievous allegations such as clandestine removal concluded without tangible evidence, justifiable? 

Order – 

• The Tribunal observed that other than the entries in the notebook and the statement of the appellants no other evidence has been put forth by the Department.
• Further, it has been held in a catena of judgments that a serious charge like clandestine removal cannot be established without tangible evidence or procurement of raw material, deployment of labour, consumption of electricity, manufacture of excisable goods, sale of excisable goods, transportation of excisable goods and receipt of consideration etc.   
• The Tribunal relied on the case of Nova Petrochemicals v. CCE, Ahmadabad- II where it has been held that “There should be tangible evidence of clandestine manufacture and clearance and not merely inferences or unwarranted assumptions”.
• The tribunal held setting aside the impugned order, that department has not adduced any additional evidence and in absence of evidence, the allegations raised by the department are not substantiated.