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2013 (9) TMI 315 - AT - Central ExciseSSI Exemption - Appellant is a manufacturer of Submersible Copper Winding Wire/Insulated Copper Wire - Undertaking manufacturing activities without Central Excise registration – Show cause Notice was issued denying the benefits of SSI Exemption - Statement recorded of the proprietor Shri Parag Patel and one Shri Bhatt. The said statements were recorded on 29th April & 18/02/2003. Also seen from the records that Shri Parag Patel and Shri Rupesh Chudgar, Proprietor, had retracted the statements given by swearing on oath on affidavit and submitted the same to the DGCEI authorities and also to the Commissioner concerned – Rejecting the affidavit , DGCEI again recorded the statements of the said persons and the statements recorded were again retracted – Appellants were forced and pressurized on in making pencil entry in statutory Sales Tax register. In bail application by proprietor of the appellant, his father had clearly indicated that DGCEI officers had put pressure during inquiry, force and threat were applied for making pencil entries in the Sales Tax Register – Held that:- Department could not conclusively establish clandestine removal based on the private records as they were retracted and needs to be supported by other independent corroborative and tangible evidence - Adjudicating authority has entered into an arena of presumption and assumption - From private records, appellants have demonstrated that there was no clandestine removal of goods from the factory and all entries were recorded. Appellant had informed lower authorities names and address of purchasers of finished goods and investigating authorities have not recorded any statements, and even if recorded are not relied upon as is evidence from allegations in show cause notice – Relying upon the judgment of Hon'ble High Court of Gujarat in the case of Vishwa Traders P. Ltd. [2013 (4) TMI 55 - GUJARAT HIGH COURT] would be very relevant as the said judgment clearly holds as to the evidential value of the retracted statements and corroborative evidence which are required - There is also no endeavour of the lower authorities to corroborate allegations of clandestine removal of goods, in as much as, there is no evidence brought on record of the transporters having transported the goods without bills - Statements were recorded by lower authorities by putting pressure and under coercion and they were made to make pencil entries on Sales Tax register – Appeal allowed – Decided in favor of Assessee.
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