2009 (12) TMI 1008 - AT - Central Excise

Summary

Issues involved: Demand of duty amount, imposition of penalty, existence of suppliers, verification of letters and affidavits, remand for re-adjudication.

The judgment by Appellate Tribunal CESTAT AHMEDABAD involved a demand of duty amount of &8377; 12,31,622/- from the appellants due to non-existent suppliers of the goods as per department findings, along with an imposed penalty of &8377; 3,07,900/-.

Regarding the existence of suppliers, the appellants had submitted written submissions stating that the weavers, deemed non-existent by the department, had provided a letter to the range officer affirming their existence. The appellants also mentioned that show cause notices were issued to the suppliers demanding cenvat credit.

The Commissioner (Appeals) did not accept the appellants' contention about the weavers, as only letters were submitted initially and affidavits were provided later. The Learned SDR suggested remanding the matter for verification of the letters and affidavits, emphasizing the need for verification before re-adjudication.

Considering the submissions made by the appellants, including letters with affidavits from the suppliers in question, the Tribunal deemed it necessary to verify if the letters and affidavits were filed by the same individuals. It was also noted that show cause notices were issued to the weavers. Consequently, the Tribunal waived the pre-deposit requirement under Section 35F of the Central Excise Act, 1944, allowed the stay petition, and decided to remand the matter to the Original Adjudicating Authority for a fresh decision after providing the appellants with an opportunity to present their case.