CA Bimal Jain
Sun Ultra Technologies Pvt. Ltd. (the Appellant) was engaged in the manufacturing of welding rods under the brand name of another person. Arhat is a proprietorship firm owned by the father of director of the Appellant, who was also engaged in the manufacture of welding rods and availing value based exemption. The officer of Department had visited the factory premises of both the concerns and residence of the Director as well as other premises, where the officers found and seized various records & papers which culminated in passing of Impugned Order against the Appellants.
The Hon’ble CESTAT, Delhi has relied upon the plethora of judgments and held that merely on the basis of papers/records seized allegedly containing the production & dispatch or statement of any employee/director of the Appellant accepting the facts would not suffice to conclude that the Appellant has removed the goods without payment of duty, in absence of any corroborative evidence. Hence, the demand and penalty against the Appellant and the Director is not sustainable.
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