2026-VIL-1741-CESTAT-DEL-CE
  1. Home
  2. 2026-VIL-1741-CESTAT-DEL-CE

CENTRAL EXCISE CESTAT Cases

Central Excise – Clubbing of clearances of two firms and demand on the basis of statements of suppliers – Respondent, a proprietary concern claiming SSI exemption, was alleged to have purchased raw material and cleared goods clandestinely, and the Revenue clubbed the clearances of another firm owned by the father of the proprietor, relying on the statements of the suppliers that orders and payments for both firms were made by the proprietor of the Respondent, and the Commissioner (Appeals) dropped the demand, interest, penalty and redemption fine and reduced the penalty on confiscation - Whether the clearances of the other firm can be clubbed with those of the Respondent, and whether the statements of the suppliers can be relied upon without compliance with Section 9D of the Central Excise Act, 1944 - HELD - Section 9D(1)(b), read with Section 9D(2), makes a statement relevant for proving the truth of the facts it contains only when the person who made the statement is examined as a witness and the authority is of the opinion that it should be admitted in evidence in the interests of justice. There was nothing on record to show that the persons who made the statements were examined as witnesses by the Adjudicating Authority, and the assertion of the Revenue that Section 9D has been complied with is not correct, and the appeal deserves dismissal on this ground alone. Even if the statements are accepted, the suppliers only stated that the proprietor of the Respondent placed orders and made payments for goods supplied to both firms. The placing of orders by the proprietor for goods supplied to the firm of his father does not prove that the other firm was a dummy unit, particularly when both firms were separately registered under the VAT and other authorities, and there was no evidence to show that the sales of both firms can be clubbed - The order of the Commissioner (Appeals) is upheld and the appeal of the Revenue is dismissed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?