Tribunal overturns Commissioner's orders in clandestine removal case, highlighting need for concrete evidence

The Tribunal allowed the appeals, setting aside the Commissioner's orders confirming demand, interest, and penalty against the appellant company and its Director for alleged clandestine removal of goods. The Tribunal emphasized the need for tangible evidence beyond excess electricity consumption to establish clandestine activity, noting that suspicion alone cannot replace proof. The investigation's reliance on circumstantial evidence was deemed insufficient, leading to the conclusion that the confirmation of demand was not legally sustainable.

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Issues Involved:
The legality of confirmation of demand, interest, and penalty by the Commissioner of Central Excise & Customs against the appellant company and its Director for clandestine removal of goods based on electricity consumption and other evidence from 2003 to 2010 is challenged in the appeals.

Summary:
In the three appeals, the appellant company's confirmation of demand, interest, and penalty by the Commissioner for alleged clandestine removal of goods is contested. The investigation revealed discrepancies in electricity consumption and production of ingots, suggesting excess production. The appellant argued that electricity consumption varies due to various factors and questioned the credibility of technical reports. The Department relied on circumstantial evidence to establish clandestine activity, while the appellant emphasized the lack of concrete evidence. The Tribunal noted that excess electricity consumption alone cannot prove clandestine removal and emphasized the need for tangible evidence. Citing previous judgments, the Tribunal concluded that suspicion cannot replace proof, leading to the allowance of the appeals and setting aside of the Commissioner's orders.

Separate Judgement:
The order was pronounced by Dr. Suvendu Kumar Pati, Member (Judicial), and the appeals were allowed, setting aside the Commissioner's orders dated 31.03.2009, 26.02.2010, and 17.01.2013.

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