Case Law Details
Ashoka Re-Rolling Mills Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Kolkata has directed a re-examination of a case involving Ashoka Re-Rolling Mills Private Ltd. The case centres around the alleged clandestine removal of goods, resulting in a significant demand for excise duty, along with interest and penalties imposed on the appellant.
The case hinges on a series of handwritten loose sheets, believed to indicate the clandestine removal of goods. These sheets, alongside the statement of Shri Manoj Kumar Jain, a Director at the company, form the crux of the allegations. However, the appellants argue that these pieces of evidence have not been tested in accordance with section 9D of the Central Excise Act, 1944, making them unreliable. Furthermore, no other corroborative evidence, based on independent inquiry, has been presented to substantiate the claim of clandestine removal. The appellant cited numerous previous cases to support their argument.
The Department, on the other hand, contended that the loose sheets were recovered from the company’s premises and that the statement of the Director confirms the validity of these sheets. They claim this as corroborative evidence of the clandestine removal of goods.
However, CESTAT highlighted the need for the statement to be tested according to section 9D of the Central Excise Act, 1944, and therefore remanded the case back to the original authority for re-examination.
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