Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 951 - CESTAT CHANDIGARHClandestine removal of goods - shortage of goods - non-alloy steel ingots - cenvatable scrap - raw material - confiscation of currency - imposition of penalty - Held that: - it is clear that the law is well-settled that, in cases of clandestine manufacture and clearance, certain fundamental criteria have to be established by Revenue which mainly are the following : (i) There should be tangible evidence of clandestine manufacture and clearance and not merely inferences or unwarranted assumptions; (ii) Evidence in support thereof should be of: (a) Raw materials, in excess of that contained as per the statutory records; (b) Instances of actual removal of unaccounted finished goods (not inferential or assumed) from the factory without payment of duty; (c) Discovery of such finished goods outside the factory; (d) Instances of sale of such goods to identified parties; (e) Receipt of sale proceeds, whether by cheque or by cash, of such goods by the manufacturers or persons authorized by him; (f) Use of electricity far in excess of what is necessary for manufacture of goods otherwise manufactured and validly cleared on payment of duty; (g) Statements of buyers with some details of illicit manufacture and clearance; (h) Proof of actual transportation of goods, cleared without payment of duty; (i) Links between the documents recovered during the search and activities being carried on in the factory of production; etc - nothing has been brought on record with corroborative evidence to allege clandestine removal against the appellant. Confiscation of currency - The seized currency during the course of investigation cannot be confiscated without proving that the said seized currency is the sale proceeds of excisable goods cleared clandestinely. Therefore, we hold that absolute confiscation of the seized currency of ₹ 47,00,000/- is not sustainable accordingly, the confiscation is set aside and the Adjudicating Authority is directed to release the said amount immediately to the appellants. The demands against the appellants not sustainable - penalty on all the appellants not sustainable - appeal allowed - decided in favor of appellant.
|