GUJARAT SETCO CLUTCH LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THE appellant has proposed the following substantial questions of law : -

(2.) THE appellant company manufactures clutch plates, clutch assemblies and components thereof, which are liable to duty of excise. The department visited the factory premises of the appellant company and during routine check found that certain finished goods lying in the factory did not tally with the daily stock account register. The explanation of the appellant that the goods were returned by M/s. Telco Limited was not found acceptable and after drawing a Panchnama the goods were ordered to be put under seizure. After investigation, show cause notice dated 30 -9 -2003 was issued. After considering the reply filed by the appellant on 9 -10 -2004 respondent authority passed an order on 28 -10 -2004 confirming the show cause notice.

(3.) LEARNED senior advocate appearing on behalf of the appellant has contended that firstly the onus had wrongly been cast on the appellant. That whether goods were clandestinely removed or not, had to be established by respondent authority. Secondly, it was contended that there was no evidence on record to hold against the appellant that the appellant had indulged in any clandestine removal of goods and the inferences drawn by the respondent authority and the members of the CESTAT constituting majority were not supported by the evidence on record. It was submitted that considering the evidence on record, no reasonable person could have come to the conclusion arrived at by the respondent authority as confirmed by the majority opinion of members of SENVAT [(sic) CESTAT].