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2016 (11) TMI 53 - AT - Central ExciseDemand of duty mainly on the basis of statements of employee - whether demand of duty mainly on the statements justified? - Molasses - N/N. 6/97-CE (NT) dated 01/3/97 issued under Rule 7A of the erstwhile Central Excise Rules - BS-26 register - 750 M.T. of molasses received in the factory with purposes of testing in the laboratory within the factory - Held that: - To examine the veracity of the statement made by Shri N.L. Sharma, his cross examination was requested by the appellants at the time of adjudication by the Commissioner. However, this was turned down by him. Under the circumstances, such statement loses its evidentionary value. It has been held time and again by the higher judiciary that cross-examination of the persons giving statements if asked for has to be necessarily given. In the absence of such cross-examination the statement cannot be relied upon by Revenue to demand excise duty - in the present case the requirements of Section 9 (d) (2) of the Central Excise Act has not been satisfied. Even otherwise the statement stands retracted and cannot be relied upon to enforce duty demand - I find that the two main pieces of evidences relied upon by the Revenue to raise the demand against the appellant have been successfully assailed. Consequently the demand made in the show cause notice cannot be upheld - appeal allowed - decided in favor of appellant.
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