COMMISSIONER OF CENTRAL EXCISE Vs. VALAN BEEDI WORKS

JUDGEMENT

(1.) THIS Civil Miscellaneous Appeal at the instance of the Commissioner of Central Excise challenges the final order dated 30 January, 2004 on the file of Customs, Excise and Service Tax Appellate Tribunal, Chennai [ : 2004 (166) E.L.T. 133 (Tri. -Chennai)]. The appellant appears to have initiated proceedings against the respondent (hereinafter referred to as "the assessee") on the basis of statements given by the suppliers of Beeri Tobacco. The uncorroborated statements given by the suppliers were the basis for passing the adverse order against the assessee. The Additional Commissioner as per his order dated 18 April, 2001 directed the assessee to pay a sum of Rs. 1,61,850/ - on account of clandestine removal of 26,30,40,000 nos. of biris without accounting the same. The assessing authority arrived at a finding that the assessee illegally manufactured biris affixing unaccounted labels.

(2.) THE order passed by the original authority was challenged by the assessee before the Appellate Authority. The Appellate Authority found that there was no legal evidence justifying the action taken against the assessee. The Appellate Authority found that the uncorroborated evidence of the suppliers of raw materials alone were the basis for taking action against the assessee. In the absence of any positive materials to prove the clandestine dealings, the Commissioner disagreed with the views expressed by the original authority. Accordingly, the appeal was allowed.

(3.) THE appeal was admitted on the following substantial question of law: