TaxTMI 
TaxTMI 
2026 (2) TMI 840
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.... as "the Tribunal") in Final Order No. 20414-20420/2025 dated 28.02.2025. 3. In the appeal, the following substantial questions of law are raised: "1. Whether the Hon'ble CESTAT was correct in law in allowing the appeal of the assessee and setting aside the Order-in-Original, without properly examining and appreciating the conclusive evidences of clandestine manufacture and removal including seizure of unaccounted goods and vehicle, supplier and dealer confessions, computer data, and stock statements furnished to banks which were duly relied upon by the Adjudicating Authority while confirming the demand? 2. Whether the Hon'ble CESTAT was justified in setting aside the penalties imposed under Rule 26 of the Central Excise Rules, 2002, by allowing the conoticees' appeals, despite clear findings by the Adjudicating Authority establishing active participation and abetment of the offence by the Managing Director, Director, suppliers, and dealers in the clandestine manufacture and removal of excisable goods? 3. Whether the Hon'ble CESTAT was justified in disregarding the voluntary and admissible statement of the Managing Director recorded und....
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...., retracted statements, and computer data is contrary to the settled law laid down by the Hon'ble Supreme Court in Pooja Tex Prints Pvt. Ltd. v. Addl. Commissioner [2019 (367) ELT A322 (SC)], Starwire (India) Ltd. v. CCE [2015 (320) ELT A348 (SC)], and Kalvert Foods India Pvt. Ltd. v. CCE [2011 (270) ELT 643 (SC)]?" 4. The brief facts of the case are that the respondent is a Company engaged in the manufacture of 'detergent cakes', 'detergent powder', and 'scouring powder'. The goods manufactured by the respondent are excisable under the provisions of the Central Excise Tariff Act, 1985. Acting on specific intelligence that the respondent was engaged in clandestine manufacture and removal of excisable goods without payment of Central Excise duty, the Directorate General of Central Excise Intelligence (DGCEI) conducted search operations at the factory premises as well as the residential premises of the Managing Director of the respondent-Company. In the course of such action, various documents and finished excisable goods were recovered. Vehicles loaded with finished detergent cakes and detergent powder, suspected to be intended for removal without payment of duty, were also s....
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....havan, learned Senior Standing Counsel appearing for the appellant-Revenue, submits that, in the course of the search, unaccounted finished products as well as vehicles loaded with excisable goods were seized. Learned Senior Counsel submits that packaging materials and packed goods were also found at the premises and that supplies were made to dealers without issuance of invoices. The abnormal consumption of electricity, according to learned counsel, clearly indicated large-scale production activity. 5.1 It is further submitted that the data retrieved from the seized computer revealed invoices raised for supply of goods, thereby demonstrating removal of excisable goods without payment of duty. Learned Senior Standing Counsel also submits that the Managing Director of the respondent-Company, in the statement recorded under Section 14 of the Central Excise Act, 1944 (for short, "the Act"), admitted to unaccounted manufacture and clandestine clearance of goods. It was pointed out that excise duty was subsequently paid on the very same goods, pursuant to which the goods were released. 5.2 It is further submitted that unaccounted procurement of raw materials was established, which....
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....tated that, during inspection, raw materials, manufactured goods, packaging materials, and trucks loaded with excisable goods were found at the premises. It is contended that the material gathered during investigation establishes unaccounted manufacture and sale of excisable goods. 7.1 The Tribunal examined the material relied upon by the Commissioner in the Order-in-Original. The Tribunal recorded that the sister concern of the respondent was engaged in the manufacture of similar products and that the finished goods were cleared on payment of duty, with statutory returns having been duly filed. The Tribunal also referred to the statements recorded from the suppliers of raw materials and held that there was no investigation conducted to establish unaccounted procurement of raw materials or production by the respondent. 7.2 The Tribunal further recorded that the packing machines had been shifted from the old unit to the new factory premises of the respondent, which was evidenced by the relevant challans. It is also recorded that along with the packing machines, packaging materials were likewise shifted. Insofar as the notebooks recovered during the search are concerned, the Tr....