Case Law Details
Mittal Iron Foundry Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
In the case of Mittal Iron Foundry Private Limited versus Commissioner of Central Excise, the appellants challenged an Order-in-Original passed by the Commissioner of Central Excise, Haldia Commissionerate. The order confirmed demands for Central Excise duty, disallowed CENVAT credit, and imposed penalties based on findings from a search operation conducted by Directorate General of Central Excise Intelligence (DGCEI) officials. The appellants contested the charges of clandestine removal and the validity of the evidence presented against them.
During the search operation, shortages of finished goods and inputs were found in comparison to the stock register maintained by the appellant. The Central Excise duty liability and disallowed CENVAT credit amounted to significant sums. Additionally, alleged clandestine removals of goods were identified based on printouts retrieved from office computers.
The appellants argued that the stock verification conducted during the search was flawed and the statements obtained from the directors were coerced. They also contested the validity of evidence derived from computer printouts, emphasizing the lack of compliance with statutory mandates and the absence of corroborative evidence for clandestine removal.
The tribunal examined the evidence presented and the arguments made by both parties. Regarding the shortages found during the stock verification, it was noted that the verification was conducted in the presence of the director, who provided weights for the goods. Despite subsequent retractions, the tribunal found no reason to doubt the findings of the stock verification.
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