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2014 (3) TMI 126 - CESTAT AHMEDABADClandestine manufacture and clearance of cotton / manmade fabrics - Shortage in stock found during the course of stock verification - Held that:- In respect of cotton fabrics, the evidence like shortage of cotton fabrics of the main appellant found in the second unit and the statements of all those who were associated with the manufacturing activity of the main appellant create a very strong suspicion that the appellant is involved in clandestine manufacturing and removal of fabrics. Above evidence are sufficient to hold that main appellant has carried out manufacturing and clandestine removal of cotton fabrics - Demand of duty alongwith redemption fine confirmed. - Decided against the assessee. Demand in respect of man made fabrics (MMF) - Held that:- Under the circumstances simply on the basis of few statements and private records of the appellants, it cannot be held that the main appellant was carrying out the manufacture of man made fabrics, which was agitated by the appellants throughout the proceedings before the Adjudicating Authority of the appellate authority. Confirmation of demands, mentioned in Para 5(iii) by the lower authorities does not survive. - Decided in favor of assessee. Benefit of Notfn No. 253/82. - Held that:- Lower authorities have confirmed demands of ₹ 5,36,670/90 as indicated in Para 5(iv) above on the ground that benefit of ‘NIL’ rate of duty under Notfn No. 253/82 has been wrongly availed as these fabrics were presumably have been subjected to dutiable processes and not exempted processes. It has been rightly contested by the main appellant that addresses of those buyers, who got the fabrics after undertaking exempted processes, were exiting in the records of the main appellant. - that demands cannot be confirmed against a manufacturer simply on the basis of few confessional statements and some note books/private records maintained by the workers/employees of a manufacturer. - Demand set aside - Decided in favor of assessee. Demand on the basis of a sample registrar found in the premises of M/s Jindal Synthetics - Held that:- It is strange that Revenue is conveniently considering a record available in the premises of M/s Jindal Synthetics to be the one pertaining to the main appellant but does not want to accept that those records, found in factory premises of the main appellant, could also contain the entries of M/s Jindal Synthetics. - Demand set aside. In conclusion, demand in respect of shortage in stock and cotton fabrics confirmed - demand on other aspects set aside - Decided partly in favor of assessee.
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