2018 (11) TMI 1078 - AT - Central Excise

Clandestine removal - proper investigations not carried out - Principles of natural justice - Held that - The Ld. Adjudicating authority, on the one hand, has prejudged the matter by his finding‛ that the invoices have been able to substantiate the claim by submitting documents of movement of goods showing that raw materials were supplied by assessee on behalf of the buyers. At the same time, in the same paragraph, the adjudicating authority also takes note that the documents retrieved by investigating agency were returned to the noticee after two years and that no investigation was conducted with regard to those papers The adjudicating authority has blown hot and cold on the various issues raised in the Show Cause Notice. The conclusions have been arrived at without reasoned analysis or findings. While in some cases, the adjudicating authority took into consideration various evidences produced by the concerned noticees, in many other cases the authority has rejected the allegations made in the Show Cause Notices without sufficiently countering them or giving reasons for their rejection. The interests of justice would be best served for all the appellants herein by remanding the matter back to the adjudicating authority for de novo consideration - appeal allowed by way of remand.

Issues:
1. Request for adjournment by the appellant.
2. Consideration of submissions by the adjudicating authority regarding job work.
3. Acceptance of affidavits and cross-examination.
4. Denial of permission for cross-examination.
5. Production of documents and denial of contentions.
6. Modus operandi to evade excise duty.
7. Allegations of removing excisable goods without proper accounting.
8. Evasion of excise duty.
9. Lack of supporting evidence for job work.
10. Penalties under Rule 26 of the Central Excise Act, 2002.
11. Prejudgment by the adjudicating authority.
12. Conclusion without reasoned analysis.
13. Remanding the matter for de novo consideration.

Detailed Analysis:
1. The appellant repeatedly sought adjournments, leading to delays in the proceedings. The Tribunal noted the history of adjournment requests and decided to proceed with the final hearing without granting further adjournments due to the prolonged nature of the case.

2. The appellant argued that the adjudicating authority did not consider their submissions regarding job work carried out by a contractor, emphasizing the lack of proper justification for rejecting their contentions. The appellant highlighted discrepancies in the treatment of affidavits and the denial of permission for cross-examination.

3. The adjudicating authority's decision to deny permission for cross-examination based on inadequate reasons was challenged by the appellant, who contended that such grounds were not valid for restricting the examination process. The appellant believed that proper consideration of their contentions could have led to a reduction in the demand amount.

4. The appellant presented various documents to support their case, including delivery challans and repair bills. They argued that the adjudicating authority failed to adequately consider these documents, which could have influenced the outcome of the case.

5. The Revenue highlighted instances where the appellant allegedly engaged in practices to evade excise duty, such as removing goods without proper accounting, undervaluing invoices, and misrepresenting transactions. The Revenue argued that the appellant's actions were aimed at circumventing excise duty obligations.

6. The Tribunal observed discrepancies in the adjudicating authority's treatment of evidence and conclusions. The authority's acceptance of certain submissions without thorough analysis raised concerns about the consistency and validity of the decision-making process.

7. The Tribunal found that the adjudicating authority's conclusions lacked reasoned analysis and failed to address the allegations adequately. As a result, the Tribunal decided to remand the matter back to the adjudicating authority for a fresh consideration, allowing both parties an opportunity to present their cases comprehensively.

8. The decision to remand the case for de novo consideration aimed to ensure that all issues were thoroughly examined and that both parties had a fair chance to present their arguments. The Tribunal emphasized the importance of reasoned analysis and proper consideration of evidence in reaching a just decision.

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