2011 (10) TMI 543 - HC - Central Excise

Commissioner challenges clandestine biri removal decision; lack of evidence leads to appeal dismissal

COMMISSIONER OF CENTRAL EXCISE, TIRUNELVELI Versus VALAN BEEDI WORKS

The Commissioner of Central Excise appealed a decision holding the assessee liable for clandestine removal of biris based on uncorroborated supplier ... - Issues involved: Challenge to final order of Customs, Excise and Service Tax Appellate Tribunal based on uncorroborated statements of suppliers leading to adverse order against the assessee.Summary:The appellant, Commissioner of Central Excise, challenged an order directing the assessee to pay a sum for clandestine removal of biris based on uncorroborated statements of suppliers. The Appellate Authority found no legal evidence justifying the action and disagreed with the original authority. The Revenue appealed to CESTAT, which also found lack of evidence and dismissed the appeal. The substantial question of law was whether unbranded biris sold by a branded biri manufacturer without duty payment is lawful. The CESTAT's decision was upheld, emphasizing the absence of concrete evidence against the assessee.The assessing authority relied solely on statements from suppliers without providing an opportunity for cross-examination, leading to the dismissal of the appeal. The appellant failed to produce any invoices or bills as evidence, supporting the decisions of the Commissioner (Appeals) and CESTAT. The CESTAT's concurrence with the lower authorities' findings was upheld, resulting in the dismissal of the Civil Miscellaneous Appeal.