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TMI Blog2001 (3) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... zed and the same were provisionally released on execution of B-II bond and appropriation of Rs. 75,000.00 from the Bank guarantee executed by the appellants was ordered, besides imposition of penalty of Rs. 2 lakhs under various rules. 2. In brief the allegations brought out against the appellants have been summarised by the Commissioner in paras 11 12 of the impugned order which are reproduced below : 11. From the above facts, it appeared that ingots were taken for manufacture without any entry in records; that prescribed procedures had not been followed by the assessee in respect of removal/receipt of inputs/semi-finished goods under Rule 57F(2)/(3); that even the goods after processing, received from job workers had not been prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable for confiscation under Rule 9(2), 52A, 173Q and 226 ibid and they are liable to pay the duty on the excisable goods cleared without payment of duty and without following Central Excise Procedures valued at Rs. 88,83,301.00 involving a duty amount of Rs. 18,33,502.00 during the year 1992-93 to 1994-95. 3. Appellants have challenged the correctness of the demand raised including the seizure and imposition of penalty by outrightly denying the charge that they have removed the goods clandestinely. Their contention was that they had removed the items under Rule 57F(2) and all the documents had been prepared and there was no discrepancy in any of the RG-1 entries or shortage of the items alleged by the Department. They relied upon the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting them to pre-deposit Rs. 4 lakhs, waiver of pre-deposit of the balance amount was given. At the same time direction was given by this Bench to the Department to verify all the documents furnished by the appellants and file a detailed report pertaining to the same. The department has carried out the exercise of verifying the documents furnished by the assessee along with the reply to the show cause notice. Thereafter the detailed report has been filed by the Department which comprises of 11 + 9 pages. 4. Arguing for the appellants, Shri V. Sreedharan pointed out that there was no reason at all for the Commissioner to have rejected the seized documents produced during the time of hearing on verification on the ground that the same are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the documents was carried out and the report has been filed. The report itself is clear and based on which the claim has been rejected. Therefore the matter can be adjudicated in terms of the report filed. 6. On consideration of the submissions made, we notice that the points made by the learned Counsel has got force and require consideration. Appellants have seriously challenged the allegation of clandestine removal and their contention is that all the goods were removed under challans and the challans bear details of the goods removed under Rule 57F(2) while this is disputed by the Commissioner in his findings. However while so, he has refused to look into the seized documents and has given a finding that the records have been pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments before the Commissioner. It is for the Commissioner to carry out this exercise and give a finding taking into consideration of the pleas raised by the defence to arrive at a just and correct conclusion on the pleas raised by the appellants against the allegations brought by the Department in the show cause notice. We accept the plea that there was violation of the principles of natural justice. We are therefore of the considered opinion that the impugned order is required to be set side and the matter to be remanded for de novo consideration. We order accordingly. The Commissioner shall have all the records verified before the hearing them. At this stage, the learned DR prays for a direction by the Tribunal that the pre-deposit which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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