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2016 (10) TMI 736 - AT - Central ExciseClandestine manufacture and removal of excisable goods - Sponge Iron - demand of duty with imposition of penalties - recovery of certain private records and statement of employees of the main appellant - denial of cross examination - Held that: - the appellants should have been offered an opportunity to cross examine the persons, who gave statements, which were relied upon by the Department. This is more relevant in the present case as the Director of the Company countered various assertions made by the employee in his statement and the correctness of production register maintained privately by one of the employees. As noted above, since the whole case rests on these private records and statements, it is necessary to get the truth of the matter after following the procedure laid down by the law. The chart submitted by the Revenue in para 10 of their appeal, shows that the private records and the RG-I and other statutory records were taken selectively to allege excess clandestine production. We note that wherever the figures are to their advantage to support the allegation of Revenue those figures were selectively taken in respect of some of the selective days to arrive at a calculation. Certain parameters have been taken as per RG-I and Form-IV, which are statutory records. The percentage yield is taken from the private records. We find that there is no consistent approach in calculating the quantification of unaccounted production, if any, by the main appellant. Further, all the purported evidences and claims made by the main appellant have not been discussed and commented upon by the Original Authority. The impugned order suffers from various inconsistencies with reference to appraisal of facts and also due to violation of principles of natural justice - matter remanded back to the Original Authority for fresh decision - appeal allowed.
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