2001 (8) TMI 608 - AT - Central Excise

Summary

Issues: Appeal against order confirming duty demand and penalty imposition; Permission to urge additional grounds; Treatment of chits/scribblings as evidence of independent sales; Availability of materials obtained during inquiry to the appellant.

Analysis:
1. The appellant sought permission to raise additional grounds challenging the duty liability. The Tribunal acknowledged the issue's significance and decided to remand the matter to the Commissioner for examination. The Tribunal emphasized the duty's leviability on the appellant and the need to consider the additional ground raised by the appellant.

2. The appellant contended that the Commissioner erred in treating chits/scribblings as evidence of independent sales not covered by invoices and excise gate passes. The appellant argued that the documents did not indicate separate transactions. The Department's investigation included statements from the appellant's customers, which supported the appellant's stance. However, the Department did not provide these statements to the appellant. The Tribunal highlighted the importance of fairness in providing all materials obtained during an inquiry to the assessee. As the matter was remanded for fresh consideration, the Commissioner was directed to make the relevant materials available to the appellant for establishing no clandestine transactions.

3. The Tribunal set aside the impugned order and remanded the matter for reconsideration by the Commissioner, including the additional ground raised by the appellant. The Commissioner was instructed to allow the appellant to access materials obtained during the inquiry and present further evidence to support their position regarding the chits/scribblings not indicating clandestine dealings. The decision aimed to ensure a fair examination of the duty liability issue and the treatment of the documents in question.