Case Law Details
Nayara Energy Limited Vs C.C.E. & S.T. Rajkot (CESTAT Ahmedabad)
CESTAT Ahmedabad held that adjudicating authority cannot reject the documentary evidence without verifying the authenticity of the same. Rejection of the documents without ensuring the authenticity is gross violation of principle of natural justice which is untenable in law.
Facts-
M/s Nayara Energy Limited (Formerly known as Essar Oil Limited) cleared 2776.19 MT of furnace oil between February 2007 to April 2007 to Essar Shipping Limited. As per the said purchase order, Nayara Energy Limited is supposed to supply 5000 MT of Furnace Oil to vessels of M/s Essar Shipping Limited anchored at Hazira Port. While clearing the said consignments, the central excise duty was discharged by debiting the Served From India Scrips (‘SFIS’) produced by Essar Shipping Limited before the Jurisdictional Central Excise Authorities.
The Directorate of Revenue Intelligence (DRI) has under an investigation, issued a show cause notice dated 06.03.2009 contending inter alia that the factum of supply of furnace oil to the four named vessels of m/s Essar Shipping Limited namely MV Badri Prasad, MV Mahavir Prasad, MV Chandi Prasad and MV Anassa, was not established concerning the discrepancies observed in the documents, during the investigation. The adjudicating authority upheld the allegations made in the show cause notice and confirmed the demand of duty, interest and penalties. Being aggrieved, the present appeal is filed.
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