2008 (8) TMI 377 - HC - Central Excise

Summary

Issues involved:
1. Appeal against order passed by Customs, Excise and Service Tax Appellate Tribunal
2. Controversy over findings of Tribunal
3. Identification of manufacturer of leaf springs
4. Liability to pay duty on leaf springs
5. Manufacturing process of leaf springs
6. Excisability of steel flats after heat treatment

Analysis:
1. The appeal was filed against the order of the Customs, Excise and Service Tax Appellate Tribunal. The appellant raised substantial questions of law challenging the Tribunal's findings. The first issue was whether the Tribunal's findings were erroneous and needed correction by the High Court. The second issue raised was the preference of contemporaneous documentary evidence over oral statements. The third and fourth issues involved determining the manufacturer of leaf springs and the liability to pay duty on them, respectively.

2. The case involved M/s. Kobe Suspension Company Private Limited and related entities accused of excise duty evasion. The Commissioner imposed duty and penalties on the appellants based on discrepancies found in their transactions. The Tribunal upheld the duty imposition but directed a recalculation considering Cenvat credit. The burden of excise duty evasion was allegedly shifted to M/s. V. Jai Auto Industries, a job worker. However, contradictions in the appellants' statements and procedural irregularities were noted. The goods sent for job work were excisable, and the required procedures were not followed, indicating an attempt to avoid duty payment.

3. The Tribunal's findings were based on factual evidence and discrepancies observed in the appellants' actions. The appellants' attempts to shift the duty burden onto the job worker were deemed unacceptable. The appellants' actions, including creating misleading entries and not following proper procedures, were seen as evasive tactics to avoid duty payment. Consequently, the High Court found no substantial question of law warranting consideration and dismissed the appeal.

This detailed analysis reflects the legal issues, factual background, and the High Court's decision in the case involving excise duty evasion and the manufacturing of leaf springs.