9911796707
TMI Blog2009 (4) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... mployees of M/s. Sujana Steels Ltd. (SSL), M/s. Sujana Industries Ltd. (SIL) and proprietor of M/s. Jaiganesh Transport engaged by M/s. Sujana Steels Ltd. indicated that during the year 1997-98 the respondents had received 450.310 MTs of iron and steel scrap imported by M/s. Sujana Steels Ltd. and converted the same into ingots without accounting the receipt of the scrap in their accounts. The 450.310 MTs of ingots manufactured from the above scrap were clandestinely cleared evading duty due of Rs. 6,21,452/-. After due process of law the original authority demanded duty amount of Rs. 6,21,452/- and imposed penalty of Rs. 6,21,000/- on M/s. R.V. Steels Pvt. Ltd. under Rule 173Q of the erstwhile Central Excise Rules, 1944. He also imposed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble High Court of Bombay in 2000 (123) E.L.T. 50 (Bom.). In the case of K. Harinath Gupta v. CCE, Hyderabad - 1994 (71) E.L.T. 980 (T) it was held that charges without credible corroboration such as source of procurement not established, buyers of finished goods not contacted and receipt of sale proceeds not proved would not stand against the appellants. The Commissioner (Appeals) found the ratio of the above decision applicable to the case on hand. Also in the absence of evidence such as installed capacity of the factory, raw material utilization, labour employed, goods actually manufactured and packed etc. no demand was sustainable in law as held by the Tribunal in 1996 (82) E.L.T. 347 (T). Accordingly, vide the impugned order th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals) vacated the demand and penalties ordered by the original authority based on several judicial authorities. In the appeal filed by the Revenue there is no mention that any of the case law relied on by the Commissioner (Appeals) is not applicable to the facts of the case. The Revenue has relied on a case law in support of the appeal which does not appear to us to be relevant. The original authority had passed the order in violation of principles of natural justice. It was incumbent on him to have allowed the request for cross-examination of witnesses whose statements had been relied on in passing the order. We do not find a valid challenge to the impugned order in the appeal filed by the Revenue. Barring a retracted statement of a fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll these go to show that the finding of clandestine removal is based on assumption and presumption. Therefore, the Commissioner (Appeals) passed the impugned order vacating the order of the original authority based on sound grounds. We do not find that Revenue has raised any valid ground in the appeal and that the impugned order calls for any interference by us. 4. The case of the Revenue was that SSL diverted imported scrap violating provisions of law and had knowingly dealt with excisable goods liable to confiscation. However, the Revenue has not challenged the order of the Commissioner (Appeals) vacating the penalty imposed on SSL. It would appear that the Revenue has no reliable case that SSL had diverted scrap unauthorizedly for manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by some workers. The facts in the case of Aswin Vanaspati Industries would be identical to the facts herein as in that case also the allegation was with regard to removal of Vanaspati based on the inputs maintained. The Tribunal went in great detail and have clearly laid down that unless department produces evidence, which should be clinching, in the nature of purchase of inputs and sale of the final product demands cannot be confirmed based on some note books. A similar view was expressed by the Tribunal in the other judgments noted supra. The citations placed would directly apply to the facts of this case. Hence, following the ratio of the cited judgments, the assessee's appeal is allowed." (iii) In Chennai M.T.K. Gurusamy v. CCE, Mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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