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Clandestine Removal

ECS subject-wise list of Central Excise cases

S No	Citation	Name of the Party	Subject Heading
1	2012 (2) ECS ( 118) (Tri-Ahd)(140 KB)	M/s Windson Chem Industries	If the proprietor of the appellant-assessee who is the main beneficiary of any illegal/legal activities of the firm, admits, in his statement that there was clandestine removal of the finished goods, further corroboration, if any, may not be necessary.
2	2013 (1) ECS ( 42) (Tri-Del)(158 KB)	Mangal Sponge & Steel Pvt. Ltd.	Inputs received in factory but not accounted in statutory records is evidence of clandestine manufacture
3	2013 (1) ECS (73) (Tri-Mum)(157 KB)	M/s Shiva Steels Rolling Mills	Demand is confirmed on the ground of electricity consumption.Experiment conducted by the Revenue in presence of appellant was found that from consumption of 1 KWH of electric power 830 kgs. of finished goods are manufactured. Tribunal in the case of Orange City Alloys Pvt. Ltd. has directed the assessee to deposit 50% of the duty and penalty. Hon’ble Bombay High Court vide order dated 12.10.2011 modified and directed the assessee to deposit 25% of the duty for hearing of the appeal. SLP No. 4520/2012 filed by M/s Orange City Alloys Ltd. against the decision of Hon’ble Bombay High 07.05.2012 is dismissed by Hon’ble Supreme Court. In case of M/S Jai Bharat Steel Rolling Mills demand was confirmed on the same ground and Tribunal vide Stay Order dated 14.02.12, relying on Hon’ble Bombay High Court in case of Orange City Alloys, directed the assesse to deposit 25% of the duty
4	2013 (2) ECS ( 75)(Tri-Del)	M/s Gyscoal Alloys Ltd	Appellants are expected to be aware that credit is required to be reversed when inputs are cleared as such. No incidence for the earlier period to the effect that credit taken in such a situation was ever reversed by them voluntarily, without detecting by the department. The action and argument of reversal of cenvat credit by the appellants has to be considered as afterthought. Department has reasonably discharged the burden that inputs were not received by the appellants. No manufacturer can be expected to keep documentary evidences of its clandestine activities
5	2013 (2) ECS (37 ) (Tri-Ahd)(172 KB)	M/s Agarwal Metals & Alloys	When one of the vehicles is not even registered at the time and when other vehicles were found to be incapable of transportation or owners admitting that they have not transported which is further supported by the fact that the vehicles did not pass through the Sales Tax Check Posts and no stamps were found on documents, the case is made on the basis of documents and records and, therefore, it cannot be said that just because cross examination was not allowed, appellants were handicapped
6	2013 (2) ECS (69 ) (Tri-Ahd)(190 KB)	M/s Fortex Remedies Pvt. Ltd	Under amended Rule 8 (3 A) it was responsibility of the appellant to pay duty consignment wise from account current. In the event of any failure to follow this procedure, the goods cleared will be deemed to have been cleared without payment of duty and the consequence and penalties as provided in the Central Excise Rules shall follow
7	2013 (2) ECS (97 ) (Tri-Ahd)(189 KB)	M/s Royal Antibiotics & Investment Pvt. Ltd	Under amended Rule 8 (3 A) it was responsibility of the appellant to pay duty consignment wise from account current. In the event of any failure to follow this procedure, the goods cleared will be deemed to have been cleared without payment of duty and the consequence and penalties as provided in the Central Excise Rules shall follow
8	2013 (4) ECS (95 ) (Tri-Ahd)(180 KB)	M/s. Pigeon Textiles	Issue of SCN- relevant date.
9	2013 (4) ECS (53 ) (Tri-Ahd)(184 KB)	M/s. Chandan Steels Ltd.	The burden of explaining the shortage in raw materials on the appellant.
10	2013 (4) ECS (23 ) (Tri-Mum)(206 KB)	Ahmednagar Rolling Mills Pvt. Ltd.	In the absence of any evidence to prove that private records are wrong and did not belong to the appellants, the charge of suppression of production and clandestine removal can be established on these evidences.
11	2013 (4) ECS (57 ) (Tri-Del)(179 KB)	M/s Jyoti Divya Fabrication Ltd.	Dispute arising out of method of stock taking basis of number of pipes and tubes found short multifplied by the sectional weight mentioned in the catalogue of the applellant themselves
12	2013 (4) ECS (67 ) (Tri-Del)(389 KB)	M/s M.R.Tobacco Pvt. Ltd. and others.	For Manufacture of Gutkha plastic laminate is also a principal rave material and on the basis of the evidence of huge quantity of unaccounted receipt of such plastic laminate, burden of proof shifted to the manufacturer.
13	2012 (2) ECS (89 ) (Tri-Mum)(128 KB)	M/s Ramanand Steel Ltd.	it is a case of clandestine removal of the goods and matter cannot be examined in detail while dealing with the stay application
14	2014 (1) ECS (142) (Tri-Del)(188 KB)	M/s. Pithampur Alloys Casting Ltd. [2014	Evasion of duty by clandestine removal without accounting for manufacture was proved from material and incriminating evidence recovered during investigation.
15	2014 (1) ECS (152) (Tri-Del)(235 KB)	M/s Ganpati Rolling P. Ltd.	When there is credible evidence to indicate wrongful conduct of the respondents such as not accounting of goods and unlawful possession thereof, it has to be concluded that there was an intention to evade..
16	2014 (1) ECS (171) (Tri-Kol)(208 KB)	M/s. Union Enterprises	Evidences indicate that the production recorded in the RG-1 register by the assessee was not factually correct.
17	2014 (2) ECS (230) (Tri- Ahm.)(683 KB)	M/s Tec Papers Pvt Ltd	Clandestine removal charges have to be proved by evidences. However, these evidence depend upon facts and circumstances of each case and which can be a simple recovery of note book with corroboration by managers, staff etc.
18	2014 (3) ECS (123 ) (Tri–Chen)(316 KB)	M/s. Sujana Steels Ltd.	Supply of imported scrap without any documents by the appellant to the manufacturer for the purpose of manufacturing and clearance of Rerolled products clandestinely.
19	2014 (4) ECS (48) (Tri-Ahd)(108 KB)	M/s. Kashi Silk Mills	Grey fabrics and finished fabrics recorded in the said private lot register were not accounted for in the statutory records. The grey fabrics were received from different parties for job work illicitly and were entered into this private lot register only and were not entered into statutory records. That after processing, the fabrics were returned to the concerned parties without payment of duty and without making any entry in the Central Excise records. Demand upheld.
20	2014 (4) ECS (53) (Tri-Ahm)(138 KB)	M/s. Sangam Prints Pvt. Ltd	Appellant has clandestinely processed the grey fabrics received by them from merchant manufacturers underkacha delivery challans and clandestinely removed the processed fabrics without payment of duty. Demand upheld
21	2014 (4) ECS (62) (Tri-Del)(337 KB)	M/s. Thermotech	In a clandestine activity, it is not possible to unearth every piece of evidence and such standard of proof is not required for proving evasion of tax. The standard of evidence in a civil dispute is preponderance of probability, not the proof beyond any reasonable doubt.
22	2014 (4) ECS (98) (Tri-Ahd)(113 KB)	M/s. Tulip Lamcraft Pvt Ltd	The director and despatch supervisor had admitted that there were clandestine removals as recorded in the spiral note books. Except for asserting that there was no clandestine manufacturing activity, the appellant has not adduced any creditable evidence.
23	2014 (4) ECS (103) (Tri-Ahd)(103 KB)	M/s. Western India Ceramics Pvt. Ltd	It is a case of admitted clandestine manufacture, non-accountal of stock properly and clearance of part of the goods through fictitious firm M/s Labh Traders created by the appellant. The clandestine removal was corroborated by statements of the employees of the main appellant and other persons.
24	2014 (4) ECS (106) (Tri-Ahd)(105 KB)	M/s. Paras Steel Industries	Statements by the assessee clearly give details of the clandestine activities of the respondents and were not retracted during investigation/adjudication. When respondents did not give details of the buyers of the goods clandestinely removed Revenue cannot be faulted with for not investigating the area of extra raw materials purchased or extending investigation into the buyers of the goods clandestinely removed etc.
25	2014 (4) ECS (110) (Tri-Ahd)(162 KB)	M/s. Deep Twisters Pvt. Ltd.	Director as a representative of a unit has to be aware of Central Excise law and procedures and he cannot claim that ignorance regarding the fact that goods purchase were liable to confiscation. Penalty upheld

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Last Updated on: 18-Apr-2021
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