2002 (9) TMI 543 - AT - Central Excise

Summary

Issues Involved: Appeal against duty demand, penalty imposition, and confirmation of duty demand.

Summary:
The appeals were filed against an order confirming duty demand and imposing penalties on the appellants. The main issue was the clandestine manufacture and clearance of Polyester Yarn without paying central excise duty. The appellants denied the allegations made against them, contesting the duty demand. The Commissioner passed the impugned order against them, which was challenged in the appeals.

The appellants argued that there was no reliable evidence to prove the clandestine activities. They contended that the impugned order was based on assumptions and presumptions drawn from inconclusive evidence. The statements of the appellants were retracted, and the entries in the diary and loose sheets were insufficient to establish the allegations.

Regarding the clandestine removal of goods, reliance was placed on the diary and loose sheets found from one of the appellants. However, the Tribunal found that the statements were inconsistent and lacked corroboration. The evidence was inconclusive and inadmissible to confirm duty liability on the company.

Similarly, the allegations of manufacturing polyester chips without accountal were not proven with reliable evidence. The company's denial of receiving goods clandestinely was supported by the lack of evidence suggesting otherwise. The entries in the diary and loose sheets were deemed unreliable and insufficient for proving the allegations.

The Tribunal concluded that the impugned order could not be sustained against any of the appellants. The appeals were allowed, and the order of the Commissioner was set aside, providing consequential relief if applicable under the law.