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2017 (12) TMI 1092 - AT - Central ExciseClandestine removal - clearance of cone yarn under the guise of hank yarn clearances - evidence - cross eamination of witnesses - Held that: - the entire case of the Revenue was based upon the oral evidences in the form of statement of the buyers. He has observed that in as much as there is consistency in the said statements with regard to authenticity of the private records seized under mahazar on different date and details available therein, the same has to be given the status of evidence. It is well settled law that the statements can act as a corroborative evidence to the other independent evidences available on record and cannot by itself, be adopted as the sole evidence for holding against the assessee. In the present case, apart from the said evidences, the Revenue has failed to produce any other evidence to show that the appellant was clearing cone yarn under the guise of hank yarn and was indulging in any clandestine activities. The Hon’ble Punjab & Haryana High Court in the case of Jindal Drugs Pvt. Ltd. Vs. Union of India [2016 (6) TMI 956 - PUNJAB & HARYANA HIGH COURT] have observed that the deponent of the statement are not only required to be produced for cross examination but examination in chief is also required to be undertaken by the adjudicating authority, in terms of the provisions of Section 9D(a) of the Central Excise Act. In the absence of the same, the statements have to be kept out of consideration and cannot be relied upon as an evidence. If that be so, the said statements cannot be considered to be an evidence and if taken out of the records, nothing survives for the Revenue to rely upon as an evidence - the demand of duty against M/s.Venus Cotton Mills Pvt. Ltd. along with imposition of penalty upon them is required to be set aside. Penalty on Managing Director - Held that: - as we have set aside the penalty on the manufacturing unit, the penalty imposed upon the Managing Director is also set aside. Appeal allowed - decided in favor of appellant.
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