2014 (12) TMI 1319 - HC - Central Excise

Evidences - there is no other evidence to support the revenue allegation despite of the fact that evidence produced by the department regarding signatures of the persons who prepared and signed parallel invoices were found to be similar to that appearing on the genuine invoices - Held that - the findings recorded by the Appellate Authority and the Tribunal are essentially finding of fact recorded on appreciation of documents brought on record and the statements recorded in the proceedings which do not raise question of law much less any substantial question of law to be decided in this appeal - appeal dismissed.

Summary

Issues:
1. Interpretation of evidence in Central Excise Appeal under Section 35G of the Central Excise Act, 1944.
2. Questioning the correctness of observations made by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) regarding evidence supporting revenue allegations.

Analysis:
1. The case involved a Central Excise Appeal challenging an order passed by the CESTAT. The appellant raised a question of law regarding the correctness of the observations made by the CESTAT concerning the evidence supporting revenue allegations. The appellant argued that the evidence produced by the department, including signatures on invoices and reports from the State Forensic Science Laboratory, supported the revenue allegations. The department contended that the quantity of goods dispatched to buyers matched the details on challans/bills, and private ledgers indicated payments received for goods sold. It was argued that Central Excise duty was charged but not paid to the Government, based on the evidence presented.

2. Upon reviewing the orders of the Appellate Authorities and the Tribunal, it was found that the Tribunal had based its decision on the fact that the Revenue's reliance was solely on order forms recovered from residential premises. The respondents clarified that these orders were for booking goods and not for clearance, and the final product clearance depended on various factors. The Tribunal concluded that there was insufficient evidence to support the Revenue's allegations, leading to the rejection of the Revenue appeal. The High Court determined that the findings were factual, based on document analysis and recorded statements, and did not raise any substantial question of law for consideration in the appeal. Consequently, the Central Excise Appeal was dismissed by the High Court.

This detailed analysis of the judgment highlights the legal issues, arguments presented, and the court's reasoning in arriving at the decision to dismiss the Central Excise Appeal.