2016 (1) TMI 1479 - HC - Central Excise

Clandestine removal of goods - demand of duty and penalty based on several materials duly established during the proceedings and not just on statements of the employees - HELD THAT - Tax Appeal is admitted for consideration of following substantial question of law - Whether the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) was justified in law and in facts in allowing the appeal of the assessee on the ground that the confirmation of the duty and penalty could not have been based on confessional statements alone?

Summary

The Gujarat High Court admitted a Tax Appeal to consider whether the Customs, Excise and Service Tax Appellate Tribunal was justified in allowing the appeal of the assessee based on confessional statements alone. The Revenue's case of clandestine removal of goods without duty payment was supported by various materials, including a seized diary and statements of employees that were not retracted. The Tribunal's decision was reversed due to heavy reliance on a certificate of a Chartered Engineer produced at a later stage.