2008 (2) TMI 802 - AT - Central Excise

Summary

Issues involved: Alleged duty evasion and penalty imposition u/s Rule 209A without sufficient evidence.

Summary:
The case involved the search of shop premises leading to the recovery of processed fabrics without evidence of Central Excise duty payment. Subsequently, proceedings were initiated resulting in the confirmation of duty and imposition of a penalty. The main submissions included lack of evidence linking recovered documents to the appellants, reliance on presumptions without tangible evidence, and violation of principles of natural justice in imposing the penalty without proper justification.

The Tribunal found the revenue's case solely based on the statement of the shop proprietor and fabric recovery, which was deemed unreliable. The statement of the excise In-charge lacked corroboration and was not considered sufficient evidence. With no visit to the appellant's factory or recorded statements from key personnel, the Tribunal extended the benefit of doubt to the appellant due to the absence of evidence supporting clandestine removal, ultimately allowing the appeal with consequential relief.

In conclusion, the Tribunal ruled in favor of the appellant, highlighting the insufficiency of evidence and procedural irregularities in the case, leading to the quashing of the duty confirmation and penalty imposition.