2023 (3) TMI 573 - AT - Central Excise

Clandestine Removal - demand based on certain documents recovered from the appellant and certain statements recorded by Revenue - HELD THAT:- The appellants have heavily contested the fact that no cross-examination of the buyers was allowed and therefore no reliance on statements can be made. It is noted that the matter has travelled between commissioner and Tribunal number of times and on earlier occasion the directions of Tribunal were not followed. The direction of Tribunal made in para 3 of its order dated 26.11.2007, has been followed and relief has been granted by the Commissioner to that extent for the period 1999-2000.

The Commissioner has clearly ignored this findings and come to a difference conclusion. While doing so he is relied on the confessional statements of buyers. There are no opportunity of cross-examination has been given and the test of Section 9D of the Central Excise Act has not been passed in respect of this statements. In absence of cross-examination no reliance can be placed on these statements.

The Commissioner has quantified the amount of duty payable for the year 1999-2000 has Rs. 1,11,113/- in para 3.09 of the impugned order. The amount of duty for financial year 2000-01 has been confirmed in total ignoring the directions given by the Tribunal in the order dated 26.11.2007. The impugned order is therefore set aside, and the matter is remanded to the Commissioner for determination of the duty liability for the Financial year 2000-01 in terms of para 4 of the Tribunal order dated 26.11.2007.

Appeal allowed by way of remand.