CESTAT quashes Excise Duty Demand on Clandestine clearance of Ferro Silico Manganese on ground of Absence of Corroborative Evidence [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the excise duty demand on clandestine clearance of ferro silico manganese on the grounds of absence of corroborative evidence. 

Attitude Alloys Private Ltd, Arun Kadmawala, and Sitaram Agarwal, the appellant assessee were a company that manufactured and cleared the Ferro Silico Manganese from their factory. 

The assessee appealed against the order passed by the adjudicating authority for confirmation of the demand of excise duty based on computerized data maintained by the computer operator of the Ajay Behera which had been retrieved from a pen drive recovered from one of the office table drawer of Behera, during search of office premises and for the imposition of penalties against the assessee. 

Kartick Kurmy, the counsel for the assessee contended that no inquiries were conducted about the alleged clandestine removal based on the records recovered and the revenue alleged that sales proceeds of clandestinely cleared silico manganese in cash and no verification was done to ascertain this. 

S. Mukhopadhyay, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee had clandestinely cleared 3474.950 MT of “Ferro Silico Manganese valued Rs.11,10,61,111/- without payment of Excise duty. 

The Bench observed that the investigation had not brought in any corroborative evidence to substantiate the allegation of clandestine removal and the investigation had failed to establish the alleged clandestine clearance of goods by the assessee hence the demands confirmed in the impugned order are not sustainable. 

The two-member bench comprising Ashok Jindal (Judicial) and Anpazhakan (Technical) quashed the excise duty demand while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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