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2017 (1) TMI 228 - AT - Central ExciseClandestine clearance - unaccounted stock - forced statements - The stock of Copper ingots as well as Copper wire rods were seized on the ground that these were unaccounted - Confiscation - Interest - Penalty - Held that: - From the records of the deposition during cross examination, it clearly emerges that the original statement has been recorded by the Revenue authorities under duress. During cross examination, Shri S K Chopra has also given different interpretation of the figures contained in two recovered slips. If the later explanation is taken into account, the entire duty demand becomes unsustainable. The allegation of clandestine clearance is to be established by the Revenue on the basis of tangible evidence. Before sustaining the allegations, the same needs to be corroborated and supported by detailed investigation. We find that no investigation has been conducted into the procurement of additional raw material required for manufacture of such huge quantity of goods alleged to have been clandestinely cleared - Nothing has been brought on record regarding payment received for such clandestinely cleared goods. Some cash has been seized from the residence of Director which is alleged to be the sale proceeds of clandestinely cleared goods. Once the allegation of clandestine clearance is not sustained, there is no justification to confiscate the seized goods and currency - Appeal allowed.
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