Deciding Case without Furnishing Proper Documents by Revenue Ignoring Essentials of Justice, May Render, the Order a Nullity: CESTAT [Read Order]

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), observed that deciding a case without furnishing proper documents by the Revenue ignoring essentials of justice, may render, the order nullity.

The respondent M/s. Garg Industries Pvt Ltd is engaged in the manufacture of articles of Copper and Copper Alloys. It was alleged against the respondent that they have taken the Cenvat credit on the strength of duty-paying documents (Bills of Entry) without receiving the goods.

In these circumstances, the show cause notice was issued to deny the Cenvat credit to the respondent and also proposing penalties on other co-notices. The matter was adjudicated, and the Commissioner in the set-aside charges alleged against the respondents and dropped the proceedings initiated through the show cause notice. Aggrieved with the said order, the Revenue is in appeals before the Tribunal.

Prabhat Rameshwaram, Additional Commissioner (AR) appearing on behalf of the Revenue reiterated the grounds of appeal. The Counsel argued that it is now settled law that in revenue cases the department is not expected to prove its case with mathematical precision, and is not required to unravel each and every link in the chain and that the facts and evidence brought –out by the investigations and mentioned in the show cause notice clearly establish that such imported duty –paid goods covered by the Bills – of –Entry, have neither been received in the factory premises of M/s GIPL nor used in the manufacturing of final products.

J C Patel appeared on behalf of the respondent and submitted that the Principal Commissioner has rightly held that copies of seized documents, both relied upon and non-relied upon, have not been provided to the Respondent, despite several requests made by the respondents over the years.

The Coram comprising Ramesh Nair, Judicial Member and Raju, Technical Member observed that “In absence of supply of the copies of the documents a party may be deprived of from leading proper evidence and he may not be able to give a proper answer of the case against him by adducing positive evidence in support of his own case together with the right to contradict all other allegations. Deciding a case without furnishing proper documents by the Revenue ignoring the essentials of justice, may render the order a nullity.”

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