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2019 (6) TMI 854 - AT - Central ExciseClandestine manufacture and removal - sponge iron - demand solely on the basis of the statement of the Managing Director who was made to admit the duty liability by using force - corroborative evidences or not - HELD THAT:- The entire case against the Appellant No. (1) was built on the basis of the statement of the Director Murari Lal Agarwal and there is no other evidence to establish the factum of clandestine clearance. Further the charge of clandestine clearance cannot be established merely on the basis of statement of the Director who has alleged coercion and undue influence exhorted on him for extracting confession. Further, consistently Courts have held that duty demand cannot be sustained solely on the basis of statement recorded during the course of investigation in the absence of corroborative evidences in the form of consumption of electricity, purchase of raw-material, electricity consumption, manpower, capacity of the factory to produce the alleged quantity, mode of transportation and sale of goods, receipt of sale proceeds and other documentary evidences. Burden to prove - HELD THAT:- It is a settled law that allegation of manufacture and clandestine clearance, the burden lies on the Department to prove the charge against the assessee with proper and cogent evidence but in the present case the Revenue has not conducted complete investigation and relied upon merely the statement of the Executive Director and confirmed the duty demand is not sustainable in law. Appeal allowed - decided in favor of appellant.
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