Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 935 - AT - Central ExciseClandestine manufacture and removal - excisable goods cleared without payment of duty by showing such goods as traded goods which have been manufactured/procured from other firms - Section 9D of Central Excise Act, 1944 - the entire case of department is primarily based on the statements of 13 odd witnesses whose statements have been relied upon in the show cause notice for demanding central excise duty. Held that:- As ordered by this Tribunal in its previous order dated 04/03/2015 that the department need to comply with the requirement of Section 9D (1) of Central Excise Act, 1944. It has been provided under Section 9D (1) of Central Excise Act, 1944 that statement made and signed by a person before any central excise officer of a gazette rank during the course of enquiry of proceeding under the Central Excise Act shall be relevant for the purpose of proving, non-prosecution for an offence made under this Act. The Adjudicating Authority was required to make available the witnesses for cross-examination to the appellant to establish the evidence as legally sustainable since no other corroborative record have been produced by the department to prove the case of evasion of central excise duty by the appellant by resorting to clandestine manufacture and trading of the same in the garb of trading undertaken by their sister concern. Since, the witnesses have not been cross-examined at the time of adjudication. We feel that the evidentionary value of such statements have been lost and same alone cannot be accepted for proving the case of duty evasion only on the basis of such statements. For proving a case of clandestine manufacture and clearance of dutiable goods, some evidences more concrete and convincing nature need to be adduced. It is a settled law that in cases of alleged clandestine removals and duty evasion the burden lies on the department to prove that activities of manufacturing, its clearance and thus duty evasion have taken place with concrete evidences. We find that the department have not been able to adduce any evidence to show as to from where such a huge quantity of raw materials have been procured by the appellant to manufacture the excisable goods and to whom the same were sold without payment of duty, as to how such a huge quantities has been transported clandestinely after its clearances. We find that no enquiries have been made at the end of the buyers. Since the department has failed to establish the crucial evidences of clandestine manufacture and its clearance, we find that a case of clandestine removal and thereby evasion of central excise duty has not been established by the department - appeal allowed - decided in favor of appellant.
|