Appellate Tribunal upholds demand of Rs. 2.62 Cr in cement clearance case. Penalties imposed. Stay on payment pending deposit.

The Appellate Tribunal CESTAT KOLKATA confirmed a demand of Rs. 2,62,04,776 with interest and imposed penalties in a case involving clandestine clearance of cement. The main appellant was directed to pre-deposit Rs. 20.00 Lakhs within eight weeks, with a stay on the remaining amounts pending this payment. The tribunal found sufficient evidence, including 7 chits and invoices for clandestine removals, to support the case. The Revenue's request for early hearing was denied, with a deadline set for compliance.

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Issues: Stay application for recovery of confirmed demand and penalty in a case of clandestine clearance of cement.

Analysis:
1. Cross-examination of witnesses: The main appellant and the Managing Director sought the benefit of cross-examination of witnesses during the remand proceedings. The advocate argued that while some witnesses were cross-examined, others were not, leading to a case primarily based on statements without sufficient corroboration from independent evidence.

2. Arguments by the Appellant: The advocate contended that the department did not correctly quantify the duty, hence requesting a stay against the recovery of the confirmed demand and penalty.

3. Response by the Respondent: The respondent, represented by the Superintendent, stated that all witnesses requested for cross-examination were issued summons. It was argued that the case was not solely based on statements, as there were ample corroborative evidences, including 7 chits and procurement of excess raw materials, indicating clandestine manufacturing and clearance of finished goods.

4. Adjudication and Decision: After reviewing the case records, it was found that a case of clandestine clearance of cement was established against the main appellant. The Adjudicating Authority confirmed a demand of Rs. 2,62,04,776, along with interest, and imposed a penalty on the main appellant and the Managing Director. Various pieces of evidence, such as 7 chits and separate invoices for clandestine removals, were presented. The main appellant was ordered to pre-deposit Rs. 20.00 Lakhs within eight weeks, with a stay on the remaining amounts subject to this payment. The Revenue's application for early hearing was rejected, with instructions to report compliance by a specified date.

This detailed analysis covers the issues of the stay application, cross-examination of witnesses, arguments by both parties, adjudication process, and the final decision of the Appellate Tribunal CESTAT KOLKATA regarding the recovery of confirmed demand and penalty in the case of clandestine clearance of cement.

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