2008 (9) TMI 603

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....r maintained by the respondent. Thus, the same were seized under the provisions of Central Excise Act, 1944, hereinafter referred to as the 'Act'. On finding some loose papers in the dustbin with endorsement regarding certain transactions, investigation was carried out by the authorities at the transporters end, which according to the Revenue, revealed that the respondent had received some consignments of betel-nut, which were not entered in the stock account. On the basis of aforesaid investigation, respondent was issued show cause notice alleging clandestine manufacture and the removal of 1618 kgs. of Pan Masala and as also proposed for confirmation of duty demand with respect to the confiscation of 4 bags containing 120 kgs. of final pro....

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....nufacture and surreptitious removal was required to be proved beyond doubt by the Revenue, which they have failed to do. The Tribunal also held that the evidence collected during the course of investigation, merely creates doubt in favour of the department. However, the same cannot take place of legal evidence. 4. Being aggrieved by the aforesaid order of the Tribunal, the Commissioner of Central Excise has filed this reference under Section 35H(1) of the Act for direction to the Tribunal to refer this Court the questions of law, which emerged out of the appellate order. 5. By order dated 30-7-2003, this Court directed the Customs, Excise and Gold (Control) Appellate Tribunal to draw statement of the case and refer following que....

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....foresaid evidence definitely weighed in favour of the department's stand that consignments of betel nut as aforesaid, must have been consumed for clandestine production and subsequent removal of final product without entering into the statutory books for the purpose of evading duty. He contends that the records of different transporters clearly indicate that the consignments of betel nut were destined to reach the respondent. Thus, according to him, it could be safely presumed that those consignments of betel nut were used for production of Pan Masala and clandestine removal of the finished product. 7. Despite appearance by filing Vakalatnama, nobody has appeared on behalf of the respondent at the time of hearing. 8. Facts emana....