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Issues: (i) Whether the demand of central excise duty was sustainable on the basis of seized records, statements and surrounding corroborative material showing clandestine removal of bare copper wire; (ii) Whether denial of cross-examination of witnesses and reliance on the appellant's retracted statements vitiated the adjudication.
Issue (i): Whether the demand of central excise duty was sustainable on the basis of seized records, statements and surrounding corroborative material showing clandestine removal of bare copper wire.
Analysis: The seized loose kacha parchies, gutkas and books were found to record clearances of bare copper wire and were corroborated by the admissions of the appellant and the recipient concern. The records of the customers, transporters and the admitted cash transactions supported the Department's case of unaccounted removals. The appellant's VAT documents were found to reflect only accounted removals and did not rebut the admissions or the contemporaneous seized material. The subsequent retractions were treated as an afterthought in view of repeated statements and the absence of supporting protest material.
Conclusion: The finding of clandestine removal was upheld and the duty demand and penalty were sustained in favour of Revenue.
Issue (ii): Whether denial of cross-examination of witnesses and reliance on the appellant's retracted statements vitiated the adjudication.
Analysis: Cross-examination had been sought only in respect of three panch witnesses, and attempts were made to secure their presence, but they either did not appear or notices were returned undelivered. The appellant's counsel agreed to proceed without waiting further. In these circumstances, no prejudice was shown from the absence of cross-examination, and the reliance on the statements was not displaced on that ground.
Conclusion: The adjudication was not vitiated by denial of cross-examination, and this objection was rejected against the assessee.
Final Conclusion: The Tribunal found sufficient corroboration for the allegation of clandestine removal and found no procedural infirmity warranting interference, so the impugned order was affirmed.
Ratio Decidendi: Where seizure records, customer acknowledgments, transporter material and repeated admissions mutually corroborate clandestine removals, the demand can be sustained despite retractions, and a cross-examination objection will not succeed absent demonstrated prejudice.
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