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2020 (1) TMI 997 - AT - Central ExciseSSI exemption - use of brand name of others - demand has been made against M/s JSFPL on the ground that they have shown their own clearances as being manufactured and cleared by other units as well as sold own manufactured goods under resale invoices by showing the same as traded goods - reliance placed upon the statements of partners/proprietors of units and statement of director of M/s JSFPL. HELD THAT:- The Appellant during adjudication proceedings have contended that all the partners/ proprietors cannot read/ write English being only 7th or 9th standard pass in vernacular language and even signed the statements in Gujarati Language. Thus in view of the fact that the evidences found during search are just contrary to the allegations, no adverse inferences can be drawn against Appellant and its associate manufacturing unit. When against the actual situation of associate concerns engaged in manufacturing furniture was manifest from the panchnamas and the show cause notice relied upon the statements to allege otherwise, the adjudicating authority should have allowed the cross examination - when the Appellant unit has not been granted the opportunity to cross examination of persons whose statements have been relied upon to make allegation against the Appellant, the demand cannot be confirmed based upon such statements. Only on the basis of statement without any corroborative evidence, no allegation can be made against the Appellant. It is undisputed fact that the Appellant unit was doing trading of goods also and even if assumed that the goods were delivered to their firm, it cannot be said that the goods so delivered were manufactured by M/s JSFPL. Even Shri Hemnani in his statement has not stated that the said furniture was manufactured by M/s JSFPL. Thus the statement of Shri Hemnani cannot be made ground to hold that M/s JSFPL has cleared goods manufactured by them under the cover of estimate chits - as long as the associate units were found to be engaged in manufacturing of furniture, it cannot be said that the said furniture was manufactured by M/s JSFPL. In such case when the demand has been issued by overlooking the actual facts cannot be permitted to sustain. The charges against M/s JSFPL of removing goods without payment of duty are not sustainable - the demand and penalty imposed against M/s JSFPL set aside - appeal allowed - decided in favor of appellant.
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