2007 (4) TMI 516 - AT - Central Excise

Revenue's Appeal Dismissed Due to Lack of Evidence

The Revenue's appeal against the order quashing adjudication due to alleged non-disclosure of manufacturing activity and submission of higher production ... Demand - Manufacturing activity, proof Issues involved: Appeal against order quashing adjudication due to alleged non-disclosure of manufacturing activity and submission of higher production figures.Summary:Issue 1: Alleged non-disclosure of manufacturing activity and submission of higher production figuresThe Revenue appealed against the order quashing adjudication, contending that the Respondent failed to disclose their manufacturing activity of transmission line and furnished inflated production figures to the Rajasthan Electricity Board. The Appellant argued that the Respondent should be held liable for duty due to these actions. However, the Respondent's Advocate argued that the show cause notice and adjudication order were baseless, as the production figures submitted were projections and not actual figures. The onus of proving clandestine manufacture and removal was on the Revenue, which they failed to do. The Commissioner (Appeals) rightly quashed the adjudication order, considering the lack of evidence supporting the Revenue's claims. The decision was supported by relevant case laws. Upon review, it was found that there was no credible evidence of clandestine activities, and suspicion alone was insufficient for adjudication. Consequently, the Revenue's appeal was dismissed for lacking merit.This judgment highlights the importance of substantiated evidence in adjudication proceedings and the burden of proof resting on the Revenue in cases of alleged non-disclosure and inflated figures.