2018 (2) TMI 1310

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....n appellant) was visited by the officers and during the visit stock was challenged, it was noticed that there was shortage of final products and shortage of raw materials. On being pointed, the amount of duty involved on shortage of finished goods and shortage of raw materials was discharged by the main appellant before issuance of the show cause notice. Subsequent detailed investigation culminated in issuance of show cause notice to the appellant for demand of Central Excise duty arrived at, as being payable on the alleged clandestine removal of the goods, tabulating the details from the two chit books which were found during the surprise visit of the officers. Adjudicating Authority, after following due process of law, confirmed the deman....

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.... the appellant despite notice. Since the matter has been coming up for disposal regularly, the same are taken up for disposal even in the absence of any representation from the appellants. 4. Heard the Learned Departmental Representative, who submits that the Adjudicating Authority has clearly recorded that the two chit books which were recovered during the visit of officers, explained clandestine nature and the shortage of raw materials removed. It is his submission that having not retracted the statements given by Mr. Satish Bhavsar, Authorised Signatory who admitted clandestine removal of the goods the Adjudicating Authority s order needs to be upheld. 5. On careful consideration of submissions made by Learned Departmental Representati....

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....firmation of demand on clandestine removal on solely a single statement of authorised signatory is totally incorrect and the main appellant s were seeking cross examination of this gentlemen which were not offered to. The law is settled on this point as to if no cross examination is granted in respect of a person them the statement cannot be considered as of any evidentiary value. I find that the confirmation of the demand under the charge of clandestine removal is unsustainable. 8. Secondly, it is undisputed that the chit books on which reliance is placed by the Adjudicating Authority, in the denovo adjudication, contained details of names and addresses of recipients of the alleged clandestinely removed goods and the inputs. It is to be n....