2001 (7) TMI 856 - AT - Central Excise

Summary

Issues involved: Duty demand, penalty under Section 11AC of the Central Excise Act, rule 209A of the Central Excise Rules.

Summary:
The appeals were filed against the order confirming duty demand and imposing penalties under Section 11AC of the Central Excise Act and rule 209A of the Central Excise Rules. The case involved interception of a tempo loaded with copper wire rods, leading to the discovery of documents at the factory premises of the appellants. The Commissioner upheld the duty demand and penalties, which the appellants contested, claiming the evidence was inadmissible and obtained under duress.

The Commissioner relied on entries in documents recovered from the factory premises to confirm duty demand and penalties. However, the statements of the employees who maintained these records were not legally admissible as substantive evidence. The punch witnesses who attested the seizure of documents did not support the Revenue's case. The Commissioner also relied on statements of the appellant, which were retracted and lacked corroboration.

The Tribunal found that the evidence presented did not conclusively prove the allegations of clandestine activities regarding raw material receipt and product clearance. Additionally, the penalty under Section 11AC could not be imposed retroactively for the period in question. Consequently, the Commissioner's order was set aside, and the appeals of the appellants were accepted.