2014 (4) TMI 652 - AT - Central Excise

Duty demand - Clandestine removal of goods - Documents recovered and seized from the residential premises - Held that - Inasmuch the alleged clandestinely manufactured and cleared ingots were converted into flats by M/s. D P Processors and the finding of clandestine manufacture and clearance of flats of M/s. DC Processors stand already set aside in the above referred decision, we find that the present confirmation of demand on the clandestine clearance of ingots, based upon the same set of documents recovered from the residential premises of Shri Hem Chand Jain and same set of statements recorded during the investigation, is required to be set aside. As such, by following the decision of D P Industries 2007 (7) TMI 115 - CESTAT, NEW DELHI - Decided in favour of assessee.

Summary

Issues:
1. Confirmation of duty against the company.
2. Imposition of penalties on directors.
3. Allegations of clandestine activities and evidence.
4. Comparison with a previous Tribunal decision.
5. Arguments by the appellant's advocate.
6. Revenue's arguments for rejection of the appeal.
7. Analysis of evidence and statements.
8. Decision and relief granted in the judgment.

Confirmation of Duty Against the Company:
The judgment pertains to the confirmation of duty amounting to Rs.84,92,243 against a company engaged in the manufacture of Stainless Steel ingots. The duty was confirmed by the Commissioner, along with penalties imposed on the directors of the company. The judgment highlights that the appeals arose from the same impugned order passed by the Commissioner.

Imposition of Penalties on Directors:
Penalties of Rs.7 lakh were imposed on one director and Rs.1 lakh each on two other directors of the company. The penalties were related to the alleged duty evasion and clandestine activities conducted by the company.

Allegations of Clandestine Activities and Evidence:
The judgment discusses the allegations of clandestine removal of ingots by the manufacturing unit and the recovery of incriminating documents from the residential premises of one of the directors. The evidence collected during the investigation formed the basis for the demand of duty and penalties.

Comparison with a Previous Tribunal Decision:
The judgment compares the current case with a previous Tribunal decision involving a related entity. The Tribunal in the previous case had set aside the charges of clandestine activities based on similar evidence, leading to a reevaluation of the evidence in the present case.

Arguments by the Appellant's Advocate:
The appellant's advocate strongly relied on the previous Tribunal decision to argue for setting aside the current demand, emphasizing that the evidence presented was insufficient to prove clandestine activities.

Revenue's Arguments for Rejection of the Appeal:
The Revenue argued against setting aside the demand, citing the recovery of documents and statements indicating the company's involvement in clandestine activities. The Revenue sought the rejection of the appeal based on the evidence collected.

Analysis of Evidence and Statements:
The judgment extensively analyzed the evidence, including weighment slips, documents recovered, and statements recorded during the investigation. The Tribunal scrutinized the evidence to determine its sufficiency in proving the charges of clandestine activities and duty evasion.

Decision and Relief Granted in the Judgment:
Ultimately, the Tribunal set aside the impugned order and allowed all four appeals, providing consequential relief to the appellants. The decision was based on the insufficiency of the evidence presented by the Revenue to substantiate the charges of clandestine clearance of ingots, aligning with the findings of the previous Tribunal decision.

This detailed analysis of the judgment covers all the issues involved, providing a comprehensive overview of the legal proceedings and the Tribunal's decision.