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2008 (12) TMI 514 - AT - Central Excise
Issues involved:
The judgment involves issues related to demand under Section 11A(2) of the Central Excise Act, imposition of penalty under Section 11AC, Rule 26 of Central Excise Rules, 2002, and Rule 209A of CER, 1944, as well as the challenge to findings of clandestine removals based on private records and statements of witnesses. Details of the Judgment: Issue 1: Demand and Penalty Imposed The impugned order upheld a demand of Rs. 4,17,903/- under Section 11A(2) of the Central Excise Act, along with applicable interest and a penalty under Section 11AC on M/s. K.V. Textiles (P) Ltd. Additionally, a penalty under Rule 26 of Central Excise Rules, 2002, read with Rule 209A of CER, 1944, was imposed on M/s. VSM Associates. Issue 2: Allegations and Investigation Following irregularities detected during a visit to the appellants' premises, a Show Cause Notice was issued regarding duty payment on excisable goods. The Commissioner found discrepancies in the maintenance of records and duty payments, leading to the demand and penalties imposed. Issue 3: Commissioner's Findings and Appellants' Challenge The Commissioner found evidence of clandestine removals based on private records and statements, rejecting the appellants' claims. The appellants challenged these findings, arguing against the existence of fictitious buyers and lack of thorough investigation by the authorities. Issue 4: Judicial Analysis and Remand The judgment analyzed the evidence presented, questioning the reliability of private records and the lack of concrete proof for clandestine clearances. It concluded that the matter should be remanded for a fresh adjudication to determine the quantity and value of goods cleared clandestinely, emphasizing the need for a fair hearing for the appellants. In conclusion, the judgment addressed the issues of demand, penalties, clandestine removals, and the adequacy of evidence in a detailed manner, ultimately deciding to remand the case for further examination and a fair adjudication process.
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