2011 (5) TMI 188 - AT - Central Excise

Waived predeposi - Clandestine manufacture and clearance - the reconciliation statement was filed by the assessee before the Commissioner along with copies of invoices etc. the statement has not been considered by the Commissioner in the impugned order - Hence no alternative but to set aside the impugned order and remit the case for fresh decision to the Commissioner who shall record detailed finding after taking into account the evidence produced by the assessees along with the written submission (in the form of reconciliation statement etc.) - Thus the appeal allowed by way of remand.

Summary

Issues:
1. Waiver of predeposit of duty confirmed against M/s. Sujana Metal Products Ltd.
2. Reconciliation statement filed by M/s. Sujana Metal Products and its consideration by the Commissioner.
3. Contention regarding clandestine manufacture and clearance of TMT bars.
4. Setting aside the impugned order and remitting the case for fresh decision to the Commissioner.

Analysis:

1. The judgment addresses the waiver of predeposit of duty amounting to Rs.3,36,00,205/- confirmed against M/s. Sujana Metal Products Ltd., along with interest and penalty, as well as a penalty on M/s. R.D. Enterprises for abetment. The Tribunal waived the predeposit and proceeded with the appeals for final hearing.

2. The learned counsel for M/s. Sujana Metal Products highlighted a reconciliation statement filed before the adjudicating authority to argue that discrepancies would be resolved if the figures from RGI and private records were reconciled. The Commissioner's reliance on certain statements to establish clandestine manufacture and clearance was challenged, asserting that the statements were not incriminating. The Tribunal acknowledged that the reconciliation statement was not considered by the Commissioner and remitted the case for a fresh decision.

3. The issue of clandestine manufacture and clearance of TMT bars was central to the case. The Tribunal noted the disagreement between the parties on whether the entire duty demand would be eliminated, reduced, or sustained. It emphasized that the reconciliation attempted by the assessees was crucial and should have been taken into account by the Commissioner for a fair decision.

4. Ultimately, the Tribunal set aside the impugned order and remitted the case to the Commissioner for a fresh decision. The Commissioner was directed to consider the evidence presented by the assessees, including the reconciliation statement, and provide an opportunity for both parties to be heard before issuing new orders. The appeals were allowed by way of remand, ensuring a more comprehensive review of the case.

This detailed analysis of the judgment highlights the key issues addressed by the Tribunal and the rationale behind setting aside the original order for a fresh decision based on a more thorough consideration of the evidence presented.