2000 (9) TMI 177 - AT - Central Excise

Summary

Issues involved: Alleged clandestine clearances of consignments, recovery of duty, imposition of penalty under Central Excise Rules.

The judgment by the Appellate Tribunal CEGAT, New Delhi involved a case where officers visited the factory premises of the appellant company engaged in manufacturing pan masala, seized documents, and alleged clandestine clearances of consignments without payment of duty. The Department issued a show cause notice proposing duty recovery and penalties, which the Adjudicating Authority confirmed. The appellants denied the allegations, leading to the appeals.

The Tribunal noted that the demand was based solely on transporter documents without independent corroborative evidence. No discrepancies were found during searches at the appellants' premises, and no evidence supported the alleged clandestine clearances. The reliance on the Bill Register of the transport company was deemed inappropriate as it was not part of the show cause notice. The Tribunal highlighted that the transporter's statements were based on records and did not establish the identity of the alleged consignors or consignees.

The Tribunal found that the statements of the transporter's representative and the company's authorized signatory did not amount to admission of clandestine removal. The signatory's statement indicated a need for further clarification from the Accounts Branch and Central Excise section. Ultimately, the Tribunal held that the evidence was insufficient to prove clandestine removal, leading to the setting aside of the duty demand and penalties imposed, thereby allowing the appeals.