2026-VIL-1159-CESTAT-AHM-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Clandestine Removal of Excisable Goods - Evidentiary Requirements - Whether clandestine removal of excisable goods can be established solely on the basis of statement of an employee who is not the author of seized private records and without corroborative evidence from raw material suppliers, recipients of goods, transporters, or voluntary admission from the partners – HELD - In cases of clandestine manufacture and clearance, revenue must establish tangible evidence encompassing various activities in the chain of events including unaccounted raw material purchase in excess of statutory records, actual removal of finished goods without duty payment, discovery of such goods outside factory, instances of sale to identified parties, receipt of sale proceeds, disproportionate electricity consumption, statements of buyers with details of illicit transactions, and proof of transportation. The tribunal observed that serious charges of clandestine removal cannot be alleged merely on assumptions, presumptions or wild inferences but require corroborative evidence. In the present case, revenue relied solely on the statement of person who was not the author of the seized private records, without recording statements of actual authors despite issuing summons. There was no investigation at the recipient end despite names of four buyers appearing in the challan books, no evidence regarding transportation of goods, no voluntary admission from the partner despite several summons, and no explanation of how the value of clandestinely cleared goods was arrived at - The Department failed to adduce any positive evidence for alleging unaccounted manufacture and clandestine clearance - The order confirming the excise duty demand along with interest and penalties is set aside – The appeals are allowed
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GSTAT Filing Near: Closing Resolutions...
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