Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 734 - AT - Central ExciseClandestine manufacture and clearance of goods - Penalty u/s 11AC - Held that:- As regards the private ledger account recovered from SSSRM which contained entries regarding supply of MS Ingots by the appellants to them, these accounts being third Party documents could be used against the appellants, only if, the cross examination of the persons from whom these documents have been recovered had been allowed. This is necessary in view of the Apex Court judgment in the case of Kishan Chand Chellaram vs CIT reported in [1980 (9) TMI 3 - SUPREME Court]. In this case, the cross examination of the concerned persons of SSSRM had not been allowed. In view of this, merely on the basis of the entries in the private ledger account maintained by SSSRM regarding supply of MS Ingots by the appellants to them the allegation of clandestine removal of MS Ingots against the Appellant against the appellants would not be sustainable more so, when other than the ledger entries of SSSRM there is no other evidence of clandestine removal of MS Ingots by the appellants to SSSRM. When the studies regarding power consumption for per MT of MS Ingots produced has been conducted in respect of the appellant s unit by an Institute of the Government of India, there is no reason for discarding the report of that Institute and adopting the power consumption of 689 units per MT in respect of another induction thermal unit of M/s NIPL. There is absolutely no evidence of procurement of raw material scrap/ sponge iron or any other evidence regarding clandestine clearance and transportation of the finished products. In view of this, merely on the basis of power consumption of the appellant unit and an arbitrarily adopted ratio of 689 units MT which does not pertain to these units the allegation of unaccounted production of MS Ingots and its clandestine removal would not be sustainable. - Decided in favour of assessee.
|