TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court emphasizes need for corroborative evidence in excise cases, overturns demand based on retracted statement</h1> The court overturned the lower authority's decision to demand duty and penalty from an SSI unit based solely on a retracted statement of a partner. ... Demand and penalty - Clandestine removal Issues:1. Demand of duty and penalty imposed based on retracted statement of a partner.2. Requirement of corroborative evidence for confirming demand in excise cases.Analysis:1. The case involved an SSI unit manufacturing clutch plates, which cleared finished goods without raising invoices for raw material on job work. Central Excise officers found discrepancies, leading to a demand of duty and penalty. The demand was based solely on a partner's statement, later retracted by filing an affidavit. The appellant argued that without corroborative evidence, such as procurement records, manufacture details, or purchaser statements, the demand was unjustified. Cegat decisions were cited to support the need for substantial evidence beyond worker notes or private accounts.2. The J.D.R. contended that since one partner admitted the offense without objection from the other, further investigation was unnecessary. However, the judge disagreed, emphasizing the importance of corroborative evidence in excise cases. The retracted statement required additional verification, such as contacting buyers mentioned in delivery challans. Without such evidence, solely relying on a retracted statement was deemed insufficient. The judge referenced previous tribunal decisions supporting this stance.3. After evaluating both arguments, the judge concluded that the demand could not be upheld solely on the retracted statement. The lack of corroborative evidence, despite the retraction, rendered the demand unsustainable. The judge highlighted the obligation on the department to conduct thorough investigations in such cases. Consequently, the lower authority's decision was overturned, and the appeal was allowed, emphasizing the necessity of concrete evidence in excise-related matters.This judgment underscores the significance of corroborative evidence in excise cases, emphasizing the need for thorough investigations beyond retracted statements to uphold demands and penalties effectively.
TaxTMI 
TaxTMI 
