2004 (4) TMI 249 - AT - Central Excise

Summary

Issues:
- Appeal against Order-in-Appeal passed by the Commissioner (Appeals) regarding higher freight charges in invoices for DPC Aluminium Wire and strips cleared by Punjab State Electricity Board.

Analysis:
The appellant, engaged in manufacturing DPC Aluminium Wire and strips, filed an appeal against the Order-in-Appeal passed by the Commissioner (Appeals) regarding the clearance of goods to Punjab State Electricity Board. The issue arose when a show-cause notice was issued to the appellant for allegedly showing higher freight charges in the invoices. The Adjudicating Authority confirmed the demand and imposed a penalty, leading to the dismissal of the appellant's appeal against the adjudication order.

The appellant contended that they had shown the freight charges separately in the invoices and that the demand was based on a certificate issued by a truck union, which the appellant requested to cross-examine the issuer. However, this request was denied. Subsequently, the appellant presented another certificate from the same Truck Operator Union, indicating that the freight rate charged was equal to the amount mentioned in the invoices.

During the hearing, the Learned DR reiterated the findings of the appellant. The Tribunal observed that the demand was solely based on a certificate from the truck union, despite the appellants clearly showing the freight charges separately in the invoices. Notably, another certificate from the same truck union indicated a freight rate even higher than that mentioned in the invoices. The Tribunal emphasized that transport activity is distinct from the manufacturing of goods. Consequently, the Tribunal found the certificate issued by the truck union unreliable as evidence. Therefore, the impugned order was set aside, and the appeal was allowed in favor of the appellant.