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TaxTMI 
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2024 (8) TMI 314
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....e factory and office of PSPL on 30/03/2011 and recovered several documents and other records and prepared panchanama towards the same. The statement of Shri Manoj Kumar, staff working in the office of PSPL, Shri Tuntu Agarwal, Rajendra Pasari and Shri Anand Lal Pasari were all recorded under Section 14 of CEA, 1944. After the necessary verification and investigation, the Show Cause Notice was issued to the Appellant Company on the following grounds: (i) During the period November 2010 to March 2011, they have clandestinely cleared the goods without payment of Excise Duty to the tune of Rs.23,04,677/-. Based on the electrical consumption for these four months, the average electricity consumption was worked out. (ii) Show Ca....
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....es on the case law of Hi Tech Abrasives Ltd v. CCE-2018 (362) ELT 961, wherein it has been held that if the statements recorded under Section 14 are not subjected to verification in terms of Section 9D, the same cannot be admitted as evidence. 4. In view of these submissions, he prays that the present appeal may be allowed. 5. The Learned AR submits that the DGCEI officials have taken up detailed verification and investigation in the factory premises and in the office premises of the Appellant. They have seized several records wherein it has come to the light of the Department that the appellant has cleared goods without payment of duty during the period November 2010 to March 2011. The Department was able to seize documents showing t....
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....e Department has recovered several documents and the same have been recorded in the Pancharama drawn by the Revenue. The Department has also recorded the statements of various officials of the Appellant Company. 8. We find from the documents available in the Appeal papers that during the period November 2010 to March 2011, i.e. for five months, the Department has seized documents No. 18 and 30 wherein the daily statements of sale and purchase have been recorded along with details of dispatch of MS Ingots to various parties including the lorry receipt and payment slips etc. Therefore, there is some form of evidence towards the clandestine manufacture and clearance during this period. The Department has worked out the total electricity con....
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....iod starting from November 2010 to March 2011 and then worked out the average consumption. This consumption has been used to arrive at the quantification of manufacture for the other period under question. Therefore, we are unable to agree with the appellant that the cited case law of R.A. Castings would be applicable in the present case. 12. However, we see force in the appellant's argument that the statements recorded by various officials have been relied upon by the Revenue while framing their allegations and also while confirming the demand. It is also on record that the Appellant has asked for crossexamination of certain persons which was not granted at the time of adjudication proceedings. 13. The Hon'ble Punjab and Haryana ....
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....dence, and it would not be permissible for Respondent No. 2 to rely on the said evidence while adjudicating the matter. Neither, needless to say, would be open to the Revenue to rely on the said statements to support the case sought to be made out in the show cause notice. (iv) Once examination-in-chief, of the makers of the statements, on whom the Revenue seeks to rely in adjudication proceedings, takes place, and a copy thereof is made available to the assessee, it would be open to the assessee to seek permission to cross-examine the persons who have made the said statements, should it choose to do so. In case any such request is made by the assessee, it would be incumbent on the adjudicating authority, i.e., on Respondent No. 2 ....