CEGAT Tribunal Upholds Decision on Duty Demand Discrepancies

COMMISSIONER OF CENTRAL EXCISE, MUMBAI-III Versus MIRA SILK MILLS

COMMISSIONER OF CENTRAL EXCISE, MUMBAI-III Versus MIRA SILK MILLS - 1999 (112) E.L.T. 934 (Tribunal) Issues: Notice demanding duty, confiscation of fabrics, levy of duty, penal action for post clearances, reliability of "Vandana" note book entries, confirmation of duty and liability, insufficient evidence for post clearances, appeal by the department.

Summary:
The Appellate Tribunal CEGAT, Mumbai addressed an appeal concerning a notice issued to M/s. Mira Silk Mills, the respondent, demanding duty and proposing confiscation of fabrics. The Additional Collector confirmed duty and liability to confiscation and penalty for goods found in a vehicle but dropped proceedings related to post clearances due to insufficient evidence. The departmental representative argued that entries in the "Vandana" note book corresponded with the RG1 register, indicating clearances by the assessee. However, the tribunal found discrepancies and lack of corroboration in the evidence presented.

The tribunal noted that the entries in the note book matching the RG1 register raised suspicion, but the recovery of the book from the factory did not conclusively prove its maintenance by the assessee. The tribunal highlighted the uncertainty surrounding the ownership and maintenance of the note book, as well as discrepancies in the entries compared to other records. The tribunal also considered the explanation provided by Suresh Agarwal regarding the quantity of fabrics, which was not refuted by the notice. Ultimately, the tribunal upheld the Additional Collector's decision to not confirm the demand, citing lack of sufficient evidence and justification for non-interference.

In conclusion, the appeal was dismissed by the Appellate Tribunal CEGAT, Mumbai, based on the analysis of the evidence and the lack of corroboration supporting the department's claims.