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2005 (9) TMI 179 - AT - Central ExciseClandestine removal - Shortage of goods - demand raised on the basis of unsigned slips - reliability of statement which were not signed by any Central Excise Officer who recorded the statement - retraction of statements - HELD THAT:- The contention is that Shri Rana never retracted his statement, therefore, the facts mentioned in the statement regarding the slips can be made basis for demand which shows the actual production of the ingots which is not reflected in the RG-1 record. In respect of the goods found short in the factory, the contention is that no objection was raised, now the appellant cannot challenge the correctness of that. The Revenue relied upon the decision of the Tribunal in the case of MAJESTIC AUTO LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, GHAZIABAD [2004 (7) TMI 136 - CESTAT, NEW DELHI]. In this case, the demand was raised on the basis of certain loose slips recovered from Shri D.K. Rana who is not the employee of the appellant and is working under the labour contractor. From the statement as on record, it is clear that it is not signed by any Central Excise Officer. This fact is also clear from the order passed by the Judicial Magistrate whereby the proceedings were dropped. It is found that the Tribunal in the case of DM GEARS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, DELHI-I [2002 (1) TMI 126 - CEGAT, COURT NO. II, NEW DELHI] after considering the relevant provisions of the Section 14 of Central Excise Act is relevant that the adjudicating authority on Chose statement of workers which did not bear the signatures and did not disclose the identity of Central Excise Officer who recorded such statements cannot be sustained. In the present case, signature of the Central Excise Officer who recorded statement is not there. In view of the above decision of the Tribunal, such statements cannot be relied upon for confirming the demand. The loose slips which were recorded from Shri D.K. Rana were not signed by anybody the signatures were obtained by the Revenue on 5-12-91 at the time of recovery, therefore, the finding of the Commissioner in the impugned order that slips were signed by Rana is also not sustainable. In the present case certain weighment has been arrived on average basis, therefore, the shortage arrived at without physical weighment and only on average basis is not sustainable. The impugned order set aside - appeal allowed.
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