COMMISSIONER OF CENTRAL EXCISE Vs. TECHNOPRINTS INDIA LTD.

JUDGEMENT

(1.) Although several questions are raised by the Revenue in this appeal, the basic question is, whether the CESTAT was justified in upholding the order of the Adjudicating Authority in dropping the demand of excise duty on finished products found short during the course of search. In the present case, based on the statement of the accountant/panchanama recorded on 14th November, 1998, a show cause notice was issued calling upon the assessee to show cause as to why duty amounting to Rs. 14,99,870/- should not be recovered on 3,40,879.65 L. mtrs. of man-made fabrics which were found to be short during the course of the search. The Commissioner of Central Excise after considering the relevant documents including reconciliation statement submitted by the Director during the course of hearing came to the conclusion that the shortage that can be sustained was to the extent of 35,059.80 L. mtrs. of manmade fabrics and accordingly, confirmed the duty demand thereon amounting to Rs. 1,54,263.12. As regards the balance quantity of shortage claimed in the show cause notice, the Adjudicating Authority dropped the proceedings.

(2.) Challenging the aforesaid order, the Revenue filed an appeal before the CESTAT and the CESTAT by the impugned order upheld the adjudication order. Challenging the aforesaid order of the CESTAT, the Revenue has filed the present appeal.

(3.) It is the contention of the Revenue that the CESTAT erred in discarding the statement/panchanama recorded on 14th November, 1998 and accepting the reconciliation statement submitted by the Director subsequently during the course of adjudicating proceedings. According to the Revenue, in the absence of any retraction of the statement recorded on 14th November, 1998, the Tribunal ought not to have disturbed the order passed by the authorities below.