2019 (6) TMI 1316 - AT - Central Excise

Clandestine removal - binding wire and H.B. wire - the whole case of Revenue is based on hand written pencil ledger, seized in the premises of M/s Deepak Industries, Raipur, one of the suppliers of raw material to the appellant - HELD THAT - This Tribunal in the case of M/S DEEPAK INDUSTRIES VERSUS CC ST, RAIPUR 2019 (1) TMI 315 - CESTAT NEW DELHI , have held that the said hand written pencil ledger were not legible and the details were prepared on computer and relying upon the same, computerised chart was prepared and relied upon for raising the demand against the said M/s Deepak Industries. The demand on this appellant is also based on the same computerised extract prepared from the illegible hand written pencil ledger (RUD-4), in the show cause notice of M/s Deepak Industries. Further, the statement given by Mr. Ravinder Singh, Prop. of M/s Deepak Industries has also been found to be not admissible under Section 9D of the Act. Thus, the demand raised against this appellant also stand vitiated in view of the finding in the appeal of M/s Deepak Industries. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Alleged duty evasion based on hand-written pencil ledger entries and computerized extracts.

Analysis:
The case involved M/s M. M. Industries Pvt. Limited accused of duty evasion based on discrepancies in ledger entries from their supplier, M/s Deepak Industries. The investigation revealed unaccounted transactions and clandestine clearances of goods. The Revenue demanded duty payment, penalty, and proposed confiscation based on alleged irregularities. The adjudication process resulted in confirming a portion of the demand and imposing penalties on the appellant company and its Director. However, the Tribunal's analysis highlighted key flaws in the Revenue's case. The demand was primarily based on illegible hand-written pencil ledgers, which were later computerized for clarity. The Tribunal noted that the statements of key individuals were retracted, and no corroborative evidence was presented to support the allegations of duty evasion. The lack of clear evidence, including transportation records, receipts, or witness statements, raised doubts about the validity of the claims. Additionally, no discrepancies were found during physical inspections at the appellant's premises, further undermining the Revenue's case. The Tribunal emphasized the importance of legal procedures, such as allowing cross-examination of witnesses, which was not properly conducted in this instance. Ultimately, the Tribunal found the Revenue's case lacking in substantial evidence and ruled in favor of the appellants, setting aside the impugned order and granting them consequential benefits.

This detailed analysis of the judgment showcases the intricacies of the legal proceedings, the evidence presented, and the critical evaluation by the Tribunal to reach a just decision based on the merits of the case.