Matter remanded for fresh re-consideration as cross-examination of key witnesses not allowed

Tibrewala Industries (P) Limited Vs Commissioner of Central Excise And Service Tax (CESTAT Chandigarh)

CESTAT Chandigarh remanded the matter to the Adjudicating Authority for a fresh re-consideration as cross-examination to key witnesses was not allowed.

Facts- M/s Tibrewala Industries Pvt. Ltd. are engaged in the manufacture of sheathing compound; they obtain their main raw material i.e. plastic granules from M/s Gas Authority of India Limited (GAIL).

On an investigation conducting by the officer of DGCEI on the appellants and R.K Trading Company, a stockist of M/s GAIL, it appeared to the Department that the appellants were diverting the plastic granules, purchased from M/s GAIL, through the stockist M/s R.K. Trading Company, and were availing CENVAT credit fraudulently. Search of the premises of the appellants, the stockist and other places; it also appeared that there were certain other violations committed by the appellant; statements of different persons were recorded.

On the completion of investigation, show cause notice dated 05.04.2002 was issued to the appellants seeking to seize the unaccounted raw material/ process material found at the premises of appellant No.1 and SCN dated 30.04.2003 seeking to recover CENVAT credit of Rs.55,29,455/-alleged to have been fraudulently availed by the appellant No.1 along with interest and seeking to impose penalties.

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