TaxTMI 
TaxTMI 
2017 (11) TMI 532
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....VIDENCE AND PRODUCE DOCUMENTS IN INQUIRIES UNDER THIS ACT. (1) Any Central Excise Officer duly empowered by the Central Government in this behalf, shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act. A summons to produce documents or other things may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person summoned. (2) All persons so summoned shall be bound to attend, either in person or by an authorised agent, as such officer may direct; and all persons so summoned shall be bound to state the truth upon any subject respecting which they are examined or make statements and to produce such documents and other things as may be required: Provided that the exemptions under sections 132 and 133 of the Code of Civil Procedure (5 of 1908) shall be applicable to requisitions for attendance under this section. (3) Every such inquiry as aforesaid shall be deemed to be a "judici....
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.... was used for removal of Jarda. The vehicle was plying towards Malegaon and it was intercepted near Zodge village on DhuleMalegaon Road. Upon checking the vehicle, it was found to be carrying 90 cartons of "Gai Chhap Patel Jarda". Mr. Ratilal Raghunath Bhawsar, a salesman of R.K. Patel & Co. was travelling in the vehicle. A bill bearing no.24 dated 6th September, 1997 issued by Ganesh Trading Co. was in his possession. The other persons present in the vehicle were its driver and cleaner. Preliminary enquiries with these persons revealed that the Jarda was removed from the factory of RKPTM without a central excise invoice. Mr. Bhawsar contended that he has prepared the bill and also signed it but in the name of M/s. Ganesh Trading Co. The Jarda was cleared without the payment of duty. It was revealed that the suppliers of raw tobacco, corrugated boxes, paper and commission agents who had provided vehicles to carry raw tobacco had converted cash into demand drafts with the help of staff members of RKPTM. The officers further found that RKPTM had received 23,60,921 kg. of raw tobacco from various suppliers which were not accounted for in their statutory records. Substantial quantity o....
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...., the details of clearances of clandestine removal of Jarda were not available, therefore, the demand was calculated on the basis of unaccounted raw tobacco. He submitted that the statements made by the respondents are of high evidentiary value notwithstanding the fact that the statements were retracted. He further submitted that the contentions of the firm RKPTM and their partners and other respondents cannot be sustained and that upon nonpayment of duty, the goods are liable for confiscation. The imposition of penalty was also justified. The partners of RKPTM were also liable for penalty under Rule 209A of the Central Excise Rules, 1944. He therefore, submitted that the question framed is liable to be answered in favour of the Revenue. 7. Mr. Dwivedi took us through the reasoning of the Tribunal and submitted that the finding of the Tribunal that no incriminatory material was found in the factory is not justified. He therefore submitted that the question should be answered in the negative inasmuch as the Tribunal was not correct in rejecting the evidence recorded during the enquiry conducted under Section 14 since it was a deemed "Judicial Proceedings" under Section 14(3) of the....
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....e statements were retracted in view of the fact that they were obtained by exercising undue influence. Therefore, it was not binding upon the respondents. The raw material suppliers from Gujarat have given their statements first to the Gujarat Central Excise Officers in Gujarati. Their statements were also recorded a second time and this time by the Central Excise Officers of Nashik who have recorded their statements in the English language. The English statements were at variance with the earlier statements but the statements recorded in English are relied upon by the Commissioner. 11. The revenue was required to prove their case by cogent and positive evidence. It had to prove receipt of raw materials and unaccounted production. This they failed to do. References are made in paragraph 19 of the impugned order to statements of Shashikantbhai Bhailalbhai Patel, Kantibhai Maganbhai Patel and Ravjibhai Ashabhai Patel on multiple occasions. The statement of Shashikantbhai was first recorded on 6th February, 1998 at Anand by local Central Excise Officers wherein he stated that approximately two trucks were supplied in 1995 to M/s. R. K. Patel & Co. In the second statement recorded on ....