2010 (9) TMI 56 - HC - Central Excise

Appeals Dismissed in Central Excise Case on Duty Disputes

M/s Baba Balak Nath Steel (P) Ltd. Versus Commissioner of Central Excise

The appeals under Section 35-G of the Central Excise Act were dismissed as no substantial legal issue arose. The case involved disputes over alloy steel ... clandestine removal- The assessee had received alloy steel inputs- no duty paid on output-The department imposed duty and penalty- Confirmed by commissioner(Appeals) and the tribunal- Court dismissed arguments of the assesse and held that there was no substantial question of law. Issues:- Appeal under Section 35-G of the Central Excise Act, 1944 against CESTAT order- Admissibility of alloy steel inputs- Confirmation of demand for clandestine removal- Violation of natural justice- Validity of recovery letter during appealAnalysis:The judgment pertains to the disposal of two appeals, CEA Nos.170 and 171 of 2010, involving common questions. CEA No.170 was filed under Section 35-G of the Central Excise Act against an order passed by the Customs, Excise and Service Tax Appellate Tribunal. The substantial questions of law proposed in the appeal included issues regarding the admission of alloy steel inputs, the validity of findings by CESTAT, confirmation of demand for clandestine removal, violation of natural justice, and the validity of a recovery letter during the pendency of the appeal.The case involved scrutiny of records of a company where alloy steel ingots were cleared to another entity, some of which were sold to the appellant without duty payment. The appellant claimed that the goods were covered under the Compounded Levy Scheme and no separate duty was payable. However, the adjudicating authority held the goods to be steel ingots, liable to duty, and imposed a penalty based on evidence that the appellant received alloy steel ingots and cleared manufactured products without paying appropriate Central Excise Duty.The findings of the adjudicating authority were affirmed by the Commissioner (Appeal) and the Tribunal. The appellant argued that the finding of clandestine removal was based solely on the statement of a co-accused and lacked corroboration. However, the court noted that the authority considered the supplier's statement, sale invoices, and other evidence, providing sufficient corroboration for the findings. Consequently, the concurrent findings of fact were upheld, and no substantial question of law was found to arise.Ultimately, the appeals were dismissed, emphasizing the absence of any substantial legal issue. The judgment highlights the importance of corroborative evidence in establishing findings related to duty liability and clandestine removal.