2017 (3) TMI 1356 - AT - Central Excise

SSI exemption - clubbing of clearances - natural justice - Held that - though the case was made out on the basis of panchanama and statement of various persons but for making the defence by the appellant they are seeking to release the documents the request of the appellant is very legitimate. Non supply of the documents tantamount to violation of principle of natural justice - appeal allowed by way of remand.

Summary

Issues: Clubbing of clearances, duty liability on goods, violation of natural justice, remand of the case.

Clubbing of Clearances: The case involved the appellant, engaged in manufacturing excisable goods, being accused by the department of clearances made by other units but manufactured by the appellant. The department raised a demand against the appellant and imposed penalties on the other units and the partner of the appellant. The appellant appealed the Order-in-Original, which was rejected by the Commissioner(Appeals), leading to the appeal before the Tribunal.

Duty Liability on Goods: The appellant's counsel argued that the clearances from other units were not manufactured by the appellant but on a job work basis from various job workers. They requested documents withdrawn by the investigation agency to substantiate this defense, which were not provided, leading to a violation of natural justice. The Tribunal found the non-supply of documents as a violation of natural justice and remanded the case to the adjudicating authority for the appellant to make their defense based on the documents.

Violation of Natural Justice: The Revenue reiterated the findings of the impugned order and claimed that the department had offered to collect the documents, but the appellant avoided providing them. The Tribunal disagreed, stating that the appellant's request for documents was legitimate, and non-supply of documents amounted to a violation of natural justice. The adjudicating authority was directed to return all required documents to the appellant and provide sufficient opportunity for a personal hearing.

Remand of the Case: The Tribunal allowed the appeal by way of remand, emphasizing the importance of giving the appellant the opportunity to defend themselves based on the documents. The adjudicating authority was instructed to dispose of the denovo adjudication proceedings within four months from the date of the order due to the case's age dating back to 2003.