TMI Blog2019 (4) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s wife, viz., Mr.M.Chandramohan who appears to be a non literacy woman states that she did not know wherefrom her husband brings the tobacco and she only put them into the plastic pouches and seal them with a candle. Therefore, certain leverage can be granted to the assessee, considering the nature of trade and the trading practices which have been violated. Therefore, this Court is of the view that the penalty imposed on the firm has to be vacated in toto. The appeal filed by the assessee is partly allowed and the penalty imposed on the assessee-firm is deleted - the demand of duty stands confirmed. - Civil Miscellaneous Appeal No.607 of 2011 And Miscellaneous Petition No.1 of 2011 - - - Dated:- 7-3-2019 - Mr. Justice T.S. Sivagn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the appeal only on two substantial questions of law, the Court may consider substantial question of law no.D, which is as follows:- D. Whether the statements obtained during investigation and listed in relied upon can be ignored if they are not comfortable to proceedings to the revenue when the statements under Section 14 of the Central Excise Act, 1944 before the Superintendent are admissible as evidence in the proceedings and is not against the principles laid down in Hon'ble High Court of Calcultta in Manidra Chandra Dey Vs. CEGAT 1992 (58) ELT 192 (Cal) Confessional statement even if found admissible, should be treated as light weight document needing independent corroboration by other than the confessional statement of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , who appears to have stated that whatever they manufactured and cleared with or without accounting, were under the brand of 'Super Deluxe/Deluxe'. Based on this, show cause notice was issued. The assessee filed reply and relied upon the retraction given by both the employees as well as what was said by the Managing Partner. However, the Assessing Officer did not agree with the stand taken, proceeded to consider the case based on the statutory registers which have been maintained and confirmed the proposal in the show cause notice and levied penalty equivalent to the amount of duty as well as interest on the said amount, and personal penalty on the two employees, viz., Mr.M.Sundararajan, and Mr.M.Chandramohan. 7.On appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the employees as well as the Managing Partner was not taken into consideration in a proper manner and if the same had been done, the entire demand would have been set aside. 10.We have carefully perused the order passed by the first appellate authority and we find the order to be a well reasoned order and after taking note of the factual position, the order has been passed. In fact, the order has been provided in a unique manner by which, the relevant statements, copies of registers etc., have been photocopied in the order itself so as to show continuity. Exercising power under Section 35G of the Act, the Court cannot sit as a second appellate authority over the factual findings recorded by the first appellate authority and the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... area. The statement of one of the employee's wife, viz., Mr.M.Chandramohan who appears to be a non literacy woman states that she did not know wherefrom her husband brings the tobacco and she only put them into the plastic pouches and seal them with a candle. Therefore, certain leverage can be granted to the assessee, considering the nature of trade and the trading practices which have been violated. Therefore, this Court is of the view that the penalty imposed on the firm has to be vacated in toto. 15.For the above reasons, the appeal filed by the assessee is partly allowed and the penalty imposed on the assessee-firm is deleted. However, the demand of duty stands confirmed. No costs. Consequently, connected miscellaneous pet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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