Case Law Details
Asian Plywood Industries Private Limited Vs Commissioner of CGST & Excise (CESTAT Kolkata)
The demand of Customs duty quashed on ground of the absence of corroborative evidence for the clandestine removal of goods
Facts- Asian Plywood Industries Private Limited, the appellant assessee was engaged in the manufacturing and trading of plywood, flush doors, and blackboard. Documents were seized by the investigating team from the residence of the accountant of assessee who had stated how the Books of Account are being maintained for the manufacturing activity of the assessee and based on those records and the case had been made out of clandestine removal. The assessee contended that the documents seized by the investigating team from the residence of the accountant cannot be the primary evidence to claim the allegation of clandestine removal as the same was not corroborated by cogent evidence. The assessee appealed against the order passed by the Commissioner to confirm the demand for Customs Duty along with a penalty.
Conclusion- Held that the only document relied upon by the Revenue to allege clandestine removal of goods, is the record recovered from the residence of the Accountant of the appellant, who explained that he is the author of the said document and explained the contents of the documents. Now the question arises, on the basis of the said documents, can the demand be confirmed alleging clandestine removal of goods. The clandestine manufacture and removal of excisable goods was to be proved by tangible, direct, affirmative, and incontrovertible evidence, and the department failed to examine all the aspects relating to the clandestine removal of goods and there was no corroborating evidence relating to the clandestine removal of goods by the assessee.
FULL TEXT OF THE CESTAT KOLKATA ORDER
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