2019 (10) TMI 1201 - AT - Central Excise

Clandestine Removal - excesses of goods - PVC cables and wires - corroborative evidences or not - HELD THAT - The entire case of the revenue is based on the entries made in the said loose papers and note pads which do not stand further investigated by the revenue. It is well settled law that allegations of clandestine removal cannot be upheld on the said basis, unless there is corroborative evidence on record. The revenue has not even been able to find out any such evidence - appeal dismissed - decided against Revenue.

Summary

Issues:
Allegations of clandestine activities based on entries in loose papers and note pads without corroborative evidence.

Analysis:
The case involved multiple appeals filed by the revenue, all stemming from the same impugned orders passed by the Commissioner (Appeals). The appeals were heard by the Appellate Tribunal CESTAT ALLAHABAD, represented by Hon’ble Smt. Archana Wadhwa, Member (Judicial), and Hon’ble Mr. Anil G. Shakkarwar, Member (Technical). The central issue revolved around allegations of clandestine activities against M/s Tycon Cables India Pvt. Ltd. and M/s Singhal Cable Industries based on entries found in loose slips and note pads during a search operation conducted by Central Excise officers. The revenue initiated proceedings against the companies, leading to a demand confirmation and imposition of penalties by the Original Adjudicating Authority.

Upon appeal, the Commissioner (Appeals) set aside the order, noting that allegations of clandestine activities could not be upheld solely based on the entries in the loose papers without further investigations or corroborative evidence by the revenue. The Appellate Tribunal concurred with this view, emphasizing the requirement of corroborative evidence to substantiate allegations of clandestine removal. As the revenue failed to provide any such evidence beyond the entries in the loose papers, the Tribunal found no infirmity in the decision of the Commissioner (Appeals). Consequently, all appeals filed by the revenue were rejected, affirming the decision of the lower authority.

In summary, the judgment highlighted the importance of corroborative evidence in cases involving allegations of clandestine activities. It underscored that mere entries in loose papers and note pads are insufficient to establish such claims without further investigation or supporting evidence. The decision served as a reminder of the legal principle that substantial allegations require concrete proof to uphold them, ensuring a fair and just adjudication process in matters of excise duty disputes.