Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 450 - AT - Central ExcisePenalty u/r 25 and 26 of CER - Clandestine removal - Department’s case is built on the information which was disclosed to the Income Tax Authorities and no further investigation to corroborate clandestine removal or any suppression of production was done at any stage except for seeking clarification from the appellants - time limitation - Held that:- It is evident that the demand in this case is badly time barred, whichever of the tow dates is taken i.e. 01.09.2006, the date of the Income Tax survey or the date 31.03.2007, the ending of the relevant financial year - Since the show cause notice has been issued more than five years after the detection, the same is completely time barred and no penalty is imposable in such circumstances in the absence of demand. On merit too, the Department has not done any investigation to corroborate its charge of clandestine removal and has proposed the penalties without any corroborative evidence of clandestine removal. The entire demand is based on assumptions and presumptions bereft of any evidence. The show cause notice for the penalties solely on the basis of declaration of cash and stock six and half years back without furnishing any corroborative evidence of clandestine removal is clearly not sustainable. The impugned order is liable to be set aside on limitation as well as on merit - appeal allowed.
|