2005 (1) TMI 179 - AT - Central Excise

Summary

Issues involved: Duty demand and penalty for misdeclaration of goods, evasion of duty, undervaluation of goods, related party transactions, sufficiency of evidence.

The judgment of the Appellate Tribunal CESTAT, New Delhi involved appeals against a common order-in-original confirming duty demand with penalty for misdeclaration of goods and evasion of duty. The company, engaged in manufacturing zinc ingots and metallic residue, was accused of clearing zinc ingots as metallic residue to evade duty. The tribunal noted a difference in duty rates for the two goods and found the oral evidence insufficient to prove misdeclaration. The witnesses' statements lacked corroboration and tangible evidence, leading the tribunal to conclude that the allegations were not substantiated. The tribunal highlighted the lack of evidence regarding the zinc content in the goods supplied, emphasizing the necessity of corroborative evidence. Additionally, the tribunal observed that the presence of metallic residue at the factory did not conclusively prove misdeclaration. The tribunal also addressed the issue of undervaluation through related party transactions, ruling that the sales were not exclusively made through the related company during the period in question. Citing legal precedent, the tribunal set aside the duty demand and penalties, concluding that the impugned order could not be sustained against any of the appellants. The appeals were accepted with consequential relief as per law.