TaxTMI 
TaxTMI 
2008 (8) TMI 115
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....ew Delhi (for short, "the Tribunal"), in Appeals No. 3088 and E/3089/03-NB (SM), dated 20.11.2003, raising the following substantial questions of law:- "(i) Whether the Tribunal was justified in setting aside demand when GP Sheets are not the input for tractor parts ? (ii) Whether the findings of the Tribunal are perverse and based on no evidence especially when there was contrary and voluminous evidence to confirm that GP sheets are not the inputs for tractor parts ? (iii)Whether the Tribunal is justified in setting aside demand on the ground of time bar when the party was guilty of suppression of facts?" 3. Briefly, the facts are that the assessee in the present case is manufacturer of motor vehicles/tractor parts and accessories fall....
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....mber of opportunities given to the assessee, he neither appeared nor filed any reply to the show cause notice. The Adjudicating Authority vide order dated 29.4.2003 confirmed the demand of Rs. 3,44,398/-, besides imposing penalty of equal amount on the assessee in addition to the penalty of Rs.75,000/- on Amrik Singh under Rule 209A of the Central Excise Rules,1944. 6. In appeal before the Commissioner Appeals, the assessee succeeded. The Commissioner (Appeals) primarily considered the contention of the assessee that it had not been given fair opportunity of being heard before passing the order but still detailed discussion on the merit of controversy was also made and it was opined that the demand against the assessee was not sustainable.....
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....shed from the inquiries conducted by the Department from the Original Equipment Manufacturers to whom the assessee was supplying the parts who clearly stated that they never placed any order for manufacture of parts out of GP sheets and it was further submitted that GP sheets are not used in the manufacture of tractor/ Engine parts and no component manufactured out of GP sheets were ever received from the assessee. Still further he submitted that show cause notice was issued to the assessee and though the case was fixed on various dates of hearing but the assessee never filed any reply thereto. The request of the assessee for supply of documents though was accepted but the assessee never came forward to collect the copies thereof. The asses....
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....s clearly mentioned that the assessee had purchased GP sheets and was using the same in the manufacture of OE parts. The entire process was well within the knowledge of the Department. Even otherwise, there was a complete violation of the principles of natural justice. The assessee was not supplied with the material sought to be used against it as was collected by the revenue during the investigation at the back of the assessee. There was no material gathered by the revenue to show that the GP sheets purchased by the assessee were ever removed in clandestine manner and to whom the same were sold and further as to from which source HR/CR sheets were procured outside the books of accounts. The alleged evasion of duty took place during the per....
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....he supplier of GP sheets to the assessee were also pointed out. Though as is evident from the record, the assessee did not appear before the Adjudicating Authority but still the fact remains that the material which was collected at the back of the assessee in the preliminary investigation was not supplied to the assessee, as per the contention of learned counsel for the assessee though it has been recorded in the order passed by the Adjudicating Authority that the assessee never collected the material. Further the Commissioner (Appeals) and the Tribunal recorded findings on merits in favour of the assessee ignoring the material which had been collected by the Department in the preliminary investigation. Be that as it may, the fact remains t....