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2023 (4) TMI 825 - AT - Central ExciseClandestine manufacture of labelled and unlabelled biris - Non-issuance of proper invoices - reasonable doubt and mere suspicion or sole entries in certain records - denial of cross-examination - violation of principles of natural justice - period January, 2007 to September, 2008 - HELD THAT:- While recovery of the private records from the premises of the appellant have not been disputed. The appellants have denied lack of complete knowledge thereto as well as its contents. It has been their case that the said register does not belong to them and could have been left behind at their premises by one of the several traders visiting their premises. It is on the basis of this register that the charge for duty evasion during the period January, 2007 to September 2008 has been worked upon - it is well settled that mere entries in a diary/register or other records, without any corroborative evidence cannot be the basis to fasten the short-levy and uphold the charge of clandestine manufacture and clearance. To sustain the charge of clandestine manufacture and clearance without duty payment, other corroborative evidence is required in support and merely on the strength of statistical data, the charge of duty evasion cannot be upheld. The charge of clandestine clearance is required to be proved beyond an iota of doubt and by irrefutable evidence. Then only can imposition of duty liability on the said goods is sustainable. Thus other tangible, sufficient and corroborative piece of evidence is necessary to establish the charge of clandestine manufacture and clearance. Each link in the process is required to established - The burden to establish the factum of clandestine clearance is upon the revenue and required to be established beyond all reasonable doubt and mere suspicion or sole entries in certain records whose authenticity itself is under challenge cannot be the singular yardstick to uphold such a contention. It is settled law that the noticee has to be offered all reasonable opportunity of defence and any levy fastened denying natural justice is clearly unsustainable - the twin facets of non-supply of certain records more particularly DSA inform RG-12A and the lack of opportunity of cross examination of the witnesses are in clear violation of legal principles rendering the impugned order unsustainable. In fact, non-consideration of a contention raised in defence is not only prone to mis-carriage of justice, but is also reflective of non-application of mind. The noticee had in proceedings before lower authority made a very strong assertion requesting for copies of said documents containing references of Central Excise Invoices and by non-supply thereto, he has been denied an appropriate opportunity for his defence. Likewise, for want of recovery of any non-duty paid stocks from the buyers as well as other independent records in support of the claim of clandestine manufacture and clearance, the charge cannot be sustained on a mere bland statement/allegation made by purchasers. Moreover, denial of cross-examination of these witnesses only accentuates the claim in pursuit of a free, fair exploration of truth and justice. The impugned order, therefore, suffers from this inherent infirmity for failure to comply with natural justice - Appeal allowed.
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