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2015 (10) TMI 1102 - AT - Central ExciseWaiver of pre deposit - Clandestine removal of goods - Violation of principle of natural justice - Opportunity of cross examination not given - Difference of opinion - Majority order - Held that:- first appeal is a matter of right under the Constitution of India and the same has been also provided under the provisions of the Central Excise Act. In Revenue legislations, some minimum pre-deposit is prescribed for admission of the first appeal in most of the Taxation Statutes of the Central Government and/or the State Governments. However, under the Central Excise Act, Section 35F provides for depositing the adjudicated amount of disputed duty in respect of the goods, which are not in the control of the Central Excise authorities or any penalty levied under the Act pending the appeal. Further discretion has been provided to the appellate authority including the Tribunal that such deposit of duty demanded or penalty levied, if would cause undue hardship to such person, the appellate authority may dispense with such deposit, subject to such conditions as may be deemed fit to safe guard the interest of revenue. - no incriminating documents have been recovered from the appellants. Some information from pen drive indicating clandestine purchase of inputs and sale of outputs was recovered from one Rutuja Ispat (P) Ltd. (RIPL). The whole case of the Revenue is prima facie based on the statements of Directors and employees of RIPL. On the basis of statements and recovered data, the Directors of appellants were confronted and they have admitted to some extent. By denial of opportunity to cross-examine, there have been gross violation of the principles of natural justice - there are discrepancies in ascertaining the expected production or output based on plant capacity, as idle time and non working days, have not been considered properly. - no further pre-deposit is required and that the impugned order is fit to be set aside and matter be remanded back to the adjudicating authority for re-adjudication afresh after granting opportunity to cross-examine the witnesses whose statements have been relied upon to make out the allegations against the appellants, and to provide reasonable opportunity of hearing - Decided in favour of assessee.
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