2008 (9) TMI 658 - AT - Central Excise

Summary

Issues involved: Clandestine manufacture and clearance, duty demand, penalty imposition, principle of natural justice, documents disclosure, cross-examination rights, predeposit requirement.

Summary:

Clandestine manufacture and clearance: The Appellants were initially charged with clandestine manufacture and clearance, leading to a duty demand and penalties. The matter was remanded for re-adjudication due to procedural irregularities.

Principle of natural justice: The Tribunal found that the Adjudicating Commissioner confirmed a higher duty demand and penalties in the de novo Order, which was not permissible without an appeal from the Department. The Appellants raised concerns about lack of document disclosure and cross-examination rights.

Document disclosure and cross-examination: The Appellants argued that the de novo Order was passed without providing necessary documents and allowing cross-examination of relevant individuals. The Department contended that some documents were unavailable due to third-party involvement.

Predeposit requirement: The Tribunal directed the first Appellant to predeposit Rs. 10.00 lakhs within six weeks, with the balance amount waived during the appeal process. The adequacy of the predeposit offered by the Appellants was questioned, considering the nature of the case.

In conclusion, the Tribunal emphasized the need for a detailed examination of the case records and available documents to determine the duty and penalty liabilities. The Appellants were required to comply with the predeposit directive to proceed with the appeals effectively.