2017 (9) TMI 873 - AT - Central Excise

Suppression of facts - contradiction to the evidence available on records - intention to evade duty - Held that - It is seen from the records that the First Appellate Authority while considering the appeal filed by the appellant had given detailed findings as to why he has come to conclusion as there was a suppression of fact with intend to evade duty - it can be seen from grounds of appeal of appellant, they have not at all contradicted the findings in an effective manner. The appellant has not been able to dislodge the findings of by both the lower authorities conclusion that there was an intention to evade duty and hence needs to be penalized - appeal dismissed - decided against appellant.

Summary

Issues: Allegations of suppression and manipulation of information to evade duty, appeal against Order-in-Appeal, contention regarding clandestine removal, discrepancies in records and statements, intention to evade duty, penalty imposition, findings of lower authorities, appeal rejection.

The judgment involves an appeal against an Order-in-Appeal where the appellant was alleged to have suppressed and manipulated information to evade duty exceeding a certain limit. The appellant contested the show cause notice on merits, but the adjudicating authority confirmed the demands, interest, and penalties. The First Appellate Authority also upheld the Order-in-Original and rejected the appeal. The appellant argued that the data collected from other units was not shown to them, and the allegation of clandestine removal should be proven with concrete evidence. They also contended that the value of clearances and the basis for determining the amount were not adequately explained. However, the Tribunal found that the appellant had consistently given misleading statements and false information, not supported by available evidence. The Tribunal upheld the findings of the lower authorities regarding suppression of information and evasion of duty, leading to penalty imposition.

Regarding the contention of clandestine removal, the appellant claimed to be an SSI Unit engaged in cement manufacturing, with clearances below the exemption limit even after considering the alleged unaccounted clearances. They argued that the rejected material was not entered in the register for determining raw material quantity accurately. However, the Tribunal found no merit in these contentions, stating that the stock register and private diary maintained by the appellant's Chemist indicated suppression of actual production and clearances to evade duty. Discrepancies between various registers and statements were noted, leading to the conclusion that the appellant had manipulated figures to avoid duty payment exceeding exemption limits. The Tribunal agreed with the Adjudicating Authority's findings and upheld the penalty imposition based on intentional evasion of duty.

The Tribunal analyzed the appellant's arguments against the findings of the lower authorities and concluded that the appellant failed to effectively contradict the established intention to evade duty. The Tribunal upheld the impugned order, confirming the penalty imposition and rejecting the appeal. The judgment was pronounced on 30/08/2017 by the Tribunal.