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2018 (7) TMI 1591 - AT - Central ExciseClandestine removal - cross-examination of all purchasers denied - principles of Natural Justice - illicit clearance plastic bags - parallel invoices - appellant cleared the finished goods namely plastic bags to various traders by raising Kachcha Chiththi/documents. Whether the denial of cross examination of the witnesses by the adjudicating authority has prejudicially impacted the right of the appellant to put forth a proper defence in the matter? Held that:- It is quite evident that the quantum of clearances have been determined on the basis of monthly purchases stated by the buyers of the goods in their statements recorded. The quantum of purchase so stated in the statement is not further corroborated. In such a situation when the entire demand against the appellant is based on the uncorroborated statement of purchasers of the finished goods adjudicating authority should have allowed the opportunity for cross examination of each of the person whose statement has been relied for computing the demand. There is no doubt about the fact that appellant was indulging in clandestine clearance of the goods and was evading the payment of duty. However this determination itself is not sufficient to fasten the demand of duty on the appellant. The quantum of goods clandestinely cleared and duty evaded need to be determined on the basis of the principles/ evidences admissible in law. Till the time such a determination is done the mere fact of clandestine clearance is not sufficient confirm the demand - In the present case since the quantification of entire demand against the appellant is based on the quantum of purchases made as stated by the purchaser of the finished goods in their statements, there can be no justification for denial of cross examination as requested by the appellant. In similar situation in the case of Alliance Alloys Pvt Ltd Vs Commissioner Of Central Excise Delhi [2016 (7) TMI 153 - CESTAT CHANDIGARH], this Tribunal has been remanding the matter to the adjudicating authority for allowing the cross examination of the witnesses. This is a case where entire quantification of demand is based on the statements of the purchaser the request for cross examination of the persons tendering the statements should have been allowed, in case the same is not allowed or possible, at least reasons thereof should have been recorded - matter remanded for allowing opportunity of cross examination of the remaining witnesses and determination of the demand and penalty thereafter - appeal allowed by way of remand.
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