Case Law Details
Maa Foundry Private Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
Conclusion: Duty could not be demanded on the ground that there was absence of corroborative evidence on allegation of clandestine manufacture and removal of finished goods as ,the allegation of clandestine manufacture and removal of finished goods by the Appellant made in the Show Cause Notice, was merely on assumption and presumption, without sufficient material evidence corroborating the said allegations.
Held: Appellant-company was engaged in the manufacture of C.I. Ingot Moulds (C.I. Mould), Pig Iron and C.I. Scrap etc. which were used as raw materials. On receipt of intelligence, a search was carried out and certain incriminating document was recovered. It was alleged that appellant had purportedly clandestinely produced and removed 1283 MT, 660.230 MT and 20.770 MT aggregating to 1964.970 MT of C.I. Moulds without payment of duty of Rupees forty-four lakhs. Assessee, submitted that there was no tangible, cogent and corroborative evidence on record and that here was no confession of guilt. No independent investigation carried out and hence demand was confirmed on mere comparison of private records with Central Excise Invoice. In the instant case the entire case was based on the private records seized from the residence of the employee and office of the Appellant. There was considerable force in the contention of the Appellant that the private records relied upon by the Revenue could not be a basis to uphold the serious charge of clandestine clearance. It was settled legal position that charge of clandestine clearance was a serious charge and the onus to prove the same was on the Revenue by adducing concrete and cogent evidence. In the absence of corroborative evidence, the issue in the instant case i.e. “the charge of clandestine clearance” could not be labeled against the assessee. In view of the above discussion and settled position of law,the allegation of clandestine manufacture and removal of finished goods by the Appellant made in the Show Cause Notice, was merely on assumption and presumption, without sufficient material evidence corroborating the said allegations. Therefore, the order was set aside.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The instant Appeal has been filed by the Appellant against Orderin-Appeal No.21-22/CE/RKL-GST/2017 dated 20.11.2017 passed by the Ld.Commissioner(Appeals), GST, CX & Customs, Bhubaneswar.
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