2018 (8) TMI 459 - AT - Central Excise

Seizure of excesses stock found during stock taking - Separate SCN was issued for the seizure portion of the excess stock found, in that matter the appellant was in appeal before this Tribunal wherein the matter was remanded - Held that - Since both the proceedings are from the same investigation. In the earlier case against the same stock taking, there was an excess goods found for which separate SCN was issued. In the present case, in the same stock taking, some shortages were found in which the excise duty demand was confirmed. Since both the stocks are arising from the same investigation, I need to follow earlier order of the Tribunal wherein the Tribunal has held that the Adjudicating authority should have examined the evidences before passing this order. Appeal allowed by way of remand.

Summary

Issues: Appeal against demand confirmed by Original Authority, Excess and shortages found during stock taking, Separate Show Cause Notice (SCN) for excess stock, Appeal remanded by Tribunal, Examination of evidences, Direction for fresh order by Tribunal, Decision to decide both cases together, Timeframe for fresh order, Consideration of cross-examination request.

In the present case, the appeal was made against the Order-In-Original (OIO) dated 02/11/2002, which upheld the demand confirmed by the Original Authority due to shortages and excess found during stock taking. A separate Show Cause Notice (SCN) was issued for the excess stock found, leading to an appeal before the Tribunal in which the matter was remanded. The Tribunal emphasized that both proceedings arose from the same investigation, with excess goods and shortages found during the same stock taking. The Tribunal highlighted the importance of examining evidences over statements, directing the Adjudicating authority to consider the reconciliation statement and evidences before passing a fresh order. The Tribunal set aside the impugned order, remanding the matter for a fresh order within three months, allowing the cross-examination of Panchas if feasible, but not precluding the Adjudicating authority from passing a new order if cross-examination is not possible. The appeal was disposed of by way of remand to the Adjudicating authority, following the direction given in the earlier order of the Tribunal dated 08.01.2016.