2007 (11) TMI 529 - AT - Central Excise

Tribunal rejects Revenue's appeal, citing lack of evidence for clandestine removal

The Appellate Tribunal upheld the decision of the Commissioner (Appeals) to set aside the findings of clandestine removal based on the recovery of Kachcha ... Clandestine removal - Evidence Issues involved: Appeal against order setting aside findings of clandestine removal based on recovery of Kachcha slips without corroborative evidence.Issue 1: Clandestine removal findings based on recovery of Kachcha slipsThe respondent, engaged in manufacturing texturised yarn, was subject to proceedings following the recovery of two Kachcha slips during a search at their factory. The slips indicated excess production sold in the market without proper accounting or duty payment. The original authority confirmed demand and imposed penalty based on this evidence. However, the Commissioner (Appeals) set aside the findings, stating that Kachcha slips alone were insufficient to prove clandestine removal without corroborative evidence. The Commissioner noted that the respondent had explained the details on the slips and retracted the statement made under duress. With no additional evidence supporting the allegations, the Commissioner extended the benefit of doubt to the respondent, leading to the rejection of the Revenue's appeal.Conclusion:The Appellate Tribunal upheld the Commissioner (Appeals)'s decision to set aside the findings of clandestine removal based solely on the recovery of Kachcha slips, emphasizing the lack of corroborative evidence to substantiate the allegations. The Tribunal found no merit in the Revenue's appeal and rejected the same.