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TMI Blog2007 (2) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. the limit indicated by an exemption notification issued by the Department in that regard. The crux of the charge was that the clearances had to be taken together, and so valued, the petitioners were liable to pay excise duty. 3.The adjudication order, upon issuance of the show cause notice resulted in findings delivered against the petitioners by the Commissioner of Central Excise. Aggrieved, they preferred appeals to the Customs, Excise and Service Tax Appellate Tribunal. By its order dated 1-2-2005 [2005 (186) E.L.T. 587 (Tri.-Del.)], the Tribunal allowed the appeal and held inter alia that no materials were produced nor was there anything brought on record to show that the goods were actually cleared by the petitioners. 4.On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal to the extent it is relevant is extracted below : As Revenue has not succeeded in proving that the fully9. manufactured goods were removed from the premises of M/s. Hindustan Silicate and M/s. Bihariji, no question of demanding central excise duty from these two Appellants arise and more so on the basis of documents seized from the premises of Cosmos Industries. The learned Advocate has also referred to the statement dated 29-5-2003 of Sh. Vinod Kumar Jain who has deposed that the details were prepared simply to impress L.N. Agarwal and that some of the sale figures pertained to the goods purchased from open market. Further, there is no material brought on record to corroborate the Revenue's case that the impugned goods w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the Appellants. Accordingly, all the' appeals are allowed with consequential relief, if any' 8.This Court in the judgment reported as Sunil Gulati v. R.K. Vohra, 2007 (1) JCC 220 which was relied upon by the learned counsel for the petitioner during the hearing elaborately considered the various nuances of identical problems where adjudication proceedings culminated in orders favouring the accused/assessee and where in exercise of independent powers prosecution or complaints were lodged. The Court after noticing various judgments including Supreme Court rulings and the judgment in Standard Chartered Bank's case (supra) was of the opinion that there seemed to be a facial conflict but on a deeper analyses, it was apparent that it was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho is facing prosecution as well and the Tribunal has also upheld the findings of the adjudicators/assessing authority, that would have no bearing on the criminal proceedings and the criminal proceedings are to be determined on its own merits in accordance with law, uninhibited by the findings of the Tribunal. It is because of the reason that in so far as criminal action is concerned, it has to be proved as per the strict standards fixed for criminal cases before the criminal court by producing necessary evidence. In case of converse situation namely where the accused4. persons are exonerated by the competent authorities/Tribunal in adjudication proceedings, one will have to see that reasons for such exoneration to determine whether thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no contravention of the provisions of any Act." 9.The above narrative would show that show cause notice as well as the complaint are premised on identical facts, namely, clandestine and illegal removal without disclosure to the Central Excise Authorities by the petitioners. Though the first round went in favour of the Department in as much as adjudication by the Commissioner fastened liability upon the petitioners, those findings were reversed by the Tribunal, which categorically and unambiguously recorded that there were no materials recovered to prove the charge of clandestine removal, or that evasion of duty stood established. In these circumstances, I am of the opinion that on application of the rule enunciated in Sunil Gulati's ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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