2003 (10) TMI 549 - AT - Central Excise

Summary

Issues:
Appeal against Order-in-Appeal passed by Commissioner (Appeals) - Recovery of loose slip with discrepancies in quantity - Confirmation of demand and penalty imposition - Contention of appellants regarding examination of author of loose slip and cross-examination of Commercial Manager - Admissions made by Commercial Manager - Violation of principles of natural justice.

Analysis:
The case involves an appeal against the Order-in-Appeal passed by the Commissioner (Appeals) regarding discrepancies found in the quantity of goods cleared by the appellants. The central issue revolves around the recovery of a loose slip from the factory premises, containing details of excess clearances beyond the quantities mentioned in the invoices. The Commercial Manager, Shri D.K. Mishra, admitted to the recovery of the loose slip and the excess clearances during the investigation conducted by the Central Excise department. The adjudicating authority confirmed the demand and imposed penalties, which was upheld by the Commissioner (Appeals).

The appellants raised objections regarding the examination of the author of the loose slip and the cross-examination of Shri D.K. Mishra, claiming a violation of principles of natural justice. However, the Revenue argued that the entries in the loose slip were corroborated by the admissions made by the Commercial Manager himself. Shri D.K. Mishra acknowledged the discrepancies in the quantity of goods cleared and even admitted to clearing excess goods without payment of duty. Despite the appellants' contention that the Commercial Manager was not cross-examined, the Tribunal found no merit in their argument. It was noted that Shri D.K. Mishra, as a senior officer and employee of the company, could have been produced before the adjudicating authority for cross-examination, but the appellants failed to do so. Given the lack of retraction from his statements, the Tribunal dismissed the appeal, emphasizing that the mere denial of cross-examination did not warrant interference in the impugned order.

In conclusion, the Tribunal upheld the confirmation of demand and penalty imposition based on the clear admissions made by the Commercial Manager regarding the excess clearances of goods. The failure to produce the Commercial Manager for cross-examination and the absence of any retraction from his statements led to the dismissal of the appeal by the Tribunal, highlighting the importance of substantiated evidence and compliance with procedural requirements in such cases.