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2015 (4) TMI 736 - AT - Central ExciseClandestine removal of goods - Duty evasion - Goods removed by the appellant-Company without issue of invoice and without payment of duty - Suppression of production - Imposition of penalty on director of company - Held that:- Recovery of the loose sheets and pencil written ledger from the premises of the appellant in the course of search proved the entries therein as representative of the clandestinely removed goods which were well within the knowledge of the appellant. Active involvement of appellant in that regard came to record since those materials were in the custody of the appellant. It is common sense that the materials having utility to the possessor thereof are only possessed by him. He proves ownership thereof and is answerable to the contents therein. Entries on such incriminating materials demonstrated clandestine clearance of 562.130 MT of Sponge Iron and 887.560 MT of such goods respectively well explained by appellant. That also proved clandestine removal of 81.010 MT of Dolochar by the appellant. The statement recorded from shift supervisors being self speaking cannot be brushed aside because they were the persons within whose knowledge goods were manufactured and cleared. Their evidence was believable, cogent and credible for the reason that they vividly described methodology of production. - Preponderance of probability was against the appellant. Pleading of no statement recorded from buyer, no excess electricity consumption found, no raw material purchase found unaccounted and no input output ratio prescribed by law is of no use to it. Revenue discharged its onus of proof bringing out the allegation in the show-cause notice succinctly. But, the appellant miserably failed to discharge its burden of proof. It did not come out with clean hands.- It is not only one evidence, but multiple echoed evidence demonstrated oblique motive of the appellant and proved its malafide. Therefore, appellant fails on all counts. Revenue s investigating was successful and its suffering was established. Without human intervention evasion does not occur by an artificial person which is a company - Thus burden of Revenue was considerably lightened by preponderance of probability. Sri Sanjay Agarwal, Director, showed his knowledge about possession of various incriminating evidence by the company. That demonstrated the methodology of evasion - However, penalty on director is reduced - Decided against the assessees.
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