Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2024 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 1156 - AT - Central ExciseLevy of penalty u/r 26 of Central Excise Rules, 2002 - appellant being Director of M/s. Senor Metal Pvt Ltd Supplied the raw material clandestinely to M/s. Silver Techno cast who inturn manufactured and cleared their final products clandestinely - witnesses were not cross-examined - violation of principles of natural justice - HELD THAT:- From the statement of partner of M/s. Silver Techno Cast it is clear that though the appellant companies M/s. Senor Metal Pvt Ltd has been stated as supplier of the goods but as regards the supplies made without payment of duty the name of M/s. Senor Metal Pvt Ltd is not appearing which shows that all the supply is made by appellant’s company is under invoice and no clandestine removal was made. It is found that though the employee of the appellant company admitted to supply the goods but no quantity, value or payment thereof was brought on record as evidence. Therefore, mere verbal admission will not help the revenue. The appellant’s company M/s. Senor Metal Pvt Ltd is an excisable unit liable to pay excise duty it is worth to note that despite making charge that the appellant company has supplied the goods without issuing invoice which means without payment of duty no action was taken by the department for payment of duty from M/s. Senor Metal Pvt Ltd This also strengthen the case of the appellant that no clandestine goods removal of the M/s. Senor Metal Pvt Ltd was established. It is further found that when the appellant has seriously objected the charge of supply of goods by M/s. Senor Metals without issuing invoice to M/s. Silver Techno cast the adjudicating authority was duty bound to cross examine the employee of the M/s. Senor Metal Pvt Ltd to admit his statement as evidence which is required under Section 9 (d) of Central Excise Act, 1944 without cross examine the witness his statement cannot be relied - the department could not establish case of removal of goods by M/s. Senor Metal Pvt Ltd Without issuing invoices to M/s. Silver techno cast. Accordingly, there is no case of abetment of evasion of duty by the present appellant. Hence, the penalty is not sustainable. Appeal allowed.
|