9911796707
|
Home
Issues involved: Alleged clandestine removal of vegetable products without payment of duty based on discrepancies between a private note book and RG-1 register entries.
Summary: 1. Allegations and Charges: The Preventive Staff seized a private note book from a contractor working with the appellants, alleging clandestine removal of 956 tins of vegetable product without duty payment. The Department issued a show cause notice under various Central Excise Rules, demanding duty and imposing a penalty. 2. Appellants' Defense: The appellants argued that the note book entries were unreliable as they were maintained by labourers, not authenticated properly, and had overwritings. They contended that the contractor was not their employee, and discrepancies were due to loading issues, not excess production. Lack of evidence linking raw materials to production was highlighted. 3. Respondent's Argument: The respondent reiterated the Collector's reasons but acknowledged the lack of correlation between raw materials and production. 4. Judgment: The Tribunal found the private note book entries insufficient to prove clandestine removal, citing lack of proper authentication, overwritings, and absence of evidence linking production to raw materials. The appeal was allowed, setting aside the duty demand and penalty imposed. This judgment emphasizes the importance of reliable evidence and proper documentation in establishing allegations of duty evasion, highlighting the need for clear correlation between production records and raw material usage to substantiate claims of clandestine removal.
|
