The appellant lacked the capacity for ...

Manufacturing process for crude oils denied; order vitiated for lack of cross-examination & reliance on statements.

Case Laws     Central Excise

October 19, 2024

The appellant lacked the capacity for deterpenation/fractionation of Crude Pipertia Oil, Crude Mentha Oil (Shivalik), or any Mint Oil, implying no manufacturing process occurred for the cleared goods. The Commissioner denied cross-examination, violating natural justice principles. Reliance on statements without following Section 9D of the Central Excise Act vitiated the order. The Commissioner's observations contradicted judicial precedents, warranting setting aside the impugned order and allowing the appeal. Penalties imposed on the Partner and Managing Director were unsustainable for the same reasons.

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