1998 (9) TMI 327 - AT - Central Excise

Summary

Issues:
The issues involved in this case are the rectification of mistake in the final order, valuation dispute, and the aspect of clandestine removal of processed goods.

Rectification of Mistake in Final Order:
The Department filed an application seeking rectification of mistake in the Final Order. The appeals were disposed of in the absence of the appellant, and their counsel, where the dispute regarding valuation was decided in favor of the assessee without considering the allegation of clandestine removal of goods. The Department pointed out this oversight, leading to the reopening of the matter to decide the aspect of clandestine removal.

Valuation Dispute and Clandestine Removal:
The Department alleged that the appellant received unprocessed goods covered by Municipal Octroi Permit, processed and cleared them without duty payment. The adjudicating authority held that the appellant must have received, used, and cleared the goods based on the permit information. However, the appellant consistently denied receiving or using the goods, emphasizing the lack of proper investigation and corroborative evidence by the Department. Statements from two suppliers did not significantly advance the Department's case due to lack of recollection and records. Despite suspicions, the Excise documents did not support the alleged receipt, manufacture, and clearance of the goods, leading to the conclusion that the demand for clandestine removal could not be substantiated.

Final Decision:
The Final Order set aside the impugned order and allowed the appeals, confirming the disposal of the matter.