2017 (5) TMI 951 - AT - Central Excise

Clandestine removal - Ferro Alloys such as Silico Manganese chips - Held that - inferences without any collaborative evidence will not assist the cause of Revenue, to establish the case of clandestine removal - the Revenue has not brought out any point to interfere with the finding recorded in the impugned order - appeal dismissed - decided against Revenue.

Summary

Issues:
- Unaccounted clearance of excisable goods
- Duty demand and penalties imposition
- Appeal against the Commissioner (Appeals) order

Analysis:
1. The case involves five appeals by the Revenue against a common impugned order of the Commissioner (Appeals) regarding unaccounted clearance of excisable goods by two respondents engaged in the manufacture of Ferro Alloys. The Central Excise officers conducted investigations leading to demand and recovery of Central Excise duty and penalties. The Original Authority confirmed the duty demand and penalties, which were set aside by the Commissioner (Appeals), prompting the Revenue to file the current appeals.

2. The Revenue argued that the Commissioner (Appeals) erred in not considering various evidences collected during follow-up investigations, relying solely on earlier proceedings related to the seizure of excisable goods. The Revenue contended that evidence from the security staff register and weighment bridge should have been appreciated, and the impugned order should be set aside in favor of the original order.

3. The respondents' counsel highlighted that the case against the respondents was based on three main types of evidence: seizure of goods, security staff register entries, and weighment bridge records. They emphasized that the Deputy Commissioner's previous order had already addressed the seizure issue, finding no duty evasion, and argued that the other evidence lacked corroboration to support the demand against the respondents.

4. Upon reviewing the appeal records, the Tribunal found that the seizure of finished products did not provide evidence of clandestine removal, as confirmed by the Deputy Commissioner's previous order. The security staff register entries and weighment bridge documents were deemed inconclusive and lacking authentication, with no collaborative evidence to support the Revenue's claims of duty evasion. Consequently, the Tribunal upheld the impugned order, dismissing the appeals as lacking merit.

This detailed analysis covers the issues of unaccounted clearance of excisable goods, duty demand and penalties imposition, and the appeal against the Commissioner (Appeals) order, providing a comprehensive overview of the legal judgment.