2009 (9) TMI 872 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT CHENNAI, presided over by Ms. Jyoti Balasundaram, heard an appeal involving M/s. Sulochana Cotton Spinning Mills Ltd., a company engaged in the manufacture of cotton yarn. The company was accused of removing excisable goods for export without payment of duty. Investigations revealed that the consignments needed for export had not actually been exported to Bangladesh, and the documents provided to obtain proof of export were deemed false. A show-cause notice was issued for duty recovery and penalties against both the manufacturer and the merchant exporter. The notice was adjudicated with the demand and penalty confirmed. However, the Commissioner (Appeals) later set aside the demand and penalty. The Revenue appealed this decision, but the Tribunal upheld the Commissioner's ruling, stating that there was no evidence to prove the documents were fake. Therefore, the case of the Department failed, and the appeals were dismissed. The judgment focused on the authenticity of export documents and the lack of evidence to support the claims made by the Revenue. The decision emphasized the importance of establishing proof of export in excise duty cases. The case serves as a reminder of the need for concrete evidence to support allegations of duty evasion.