{"id":134075,"date":"2008-06-18T00:00:00","date_gmt":"2008-06-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-commissioner-of-central-vs-ms-electornic-control-on-18-june-2008"},"modified":"2017-05-07T01:38:58","modified_gmt":"2017-05-06T20:08:58","slug":"the-commissioner-of-central-vs-ms-electornic-control-on-18-june-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-commissioner-of-central-vs-ms-electornic-control-on-18-june-2008","title":{"rendered":"The Commissioner Of Central &#8230; vs M\/S.Electornic Control &#8230; on 18 June, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">The Commissioner Of Central &#8230; vs M\/S.Electornic Control &#8230; on 18 June, 2008<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nC.E.Appeal.No. 17 of 2006()\n\n\n1. THE COMMISSIONER OF CENTRAL EXCISE &amp;\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. M\/S.ELECTORNIC CONTROL CORPORATION,\n                       ...       Respondent\n\n                For Petitioner  :SRI.JOHN VARGHESE, ASSISTANT SG\n\n                For Respondent  :SRI.DINESH R.SHENOY\n\nThe Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR\nThe Hon'ble MR. Justice V.K.MOHANAN\n\n Dated :18\/06\/2008\n\n O R D E R\n                        C.N.RAMACHANDRAN NAIR &amp;\n                                   V.K.MOHANAN, JJ.\n                   ....................................................................\n                              C.E. Appeal No.17 of 2006\n                   ....................................................................\n                     Dated this the 18th day of June, 2008.\n\n                                          JUDGMENT\n<\/pre>\n<p>Ramachandran Nair, J.\n<\/p>\n<p>       Heard the Assistant Solicitor General appearing for the appellant and<\/p>\n<p>counsel appearing for the respondent.                           Pursuant to information that<\/p>\n<p>respondent was engaged in clandestine removal of goods without payment<\/p>\n<p>of duty, the department conducted search in the business premises of two<\/p>\n<p>units of the respondent and in the residence of the proprietrix. Documents<\/p>\n<p>pertaining to business transactions were seized.                                  Evidence was also<\/p>\n<p>collected from the Bank which showed withdrawals and deposits of massive<\/p>\n<p>amount by the assessee. Statements were recorded from several employees<\/p>\n<p>giving details of production, sales etc. Based on the materials gathered, the<\/p>\n<p>Adjudicating Authority confirmed duty and penalty on the respondent. The<\/p>\n<p>first appellate authority concurred with the finding of the Adjudicating<\/p>\n<p>Authority. However, on further appeal, the Tribunal cancelled the demand.<\/p>\n<p>It is against this order the Revenue has filed this appeal.<\/p>\n<p>       2. We have gone through the Tribunal&#8217;s order and the orders of the<\/p>\n<p>two lower authorities. We find that the Tribunal has considered only the<\/p>\n<p><span class=\"hidden_text\">                                     2<\/span><\/p>\n<p>grounds of appeal raised by the respondent and they have proceeded to<\/p>\n<p>assume that the department has not discharged their burden in proving<\/p>\n<p>clandestine removal of dutiable goods. Strangely, the Tribunal has not<\/p>\n<p>considered any evidence relied on by the department like the statements<\/p>\n<p>recorded from the employees, admission made by the proprietrix at the time<\/p>\n<p>of search and the evidence collected from the Bank pertaining to business<\/p>\n<p>transactions.  When prima facie evidence is established by the department,<\/p>\n<p>particularly with reference to banking transactions, it is for the respondent-<\/p>\n<p>assessee to explain why the transactions should not be treated as pertaining<\/p>\n<p>to business. The Tribunal failed to note that reasonable inferences can be<\/p>\n<p>drawn from evidence collected by the department, more so when the<\/p>\n<p>respondent fails to explain the transactions brought on record. Strangely,<\/p>\n<p>the employees statements which have evidentiary value have been ignored<\/p>\n<p>by the Tribunal. However, we do not want to enter any finding on facts<\/p>\n<p>based on evidence collected in the course of search and enquiry conducted<\/p>\n<p>by the department.        Counsel for the appellant contended that the<\/p>\n<p>adjudication given up for Calicut unit does not bar the depatment from<\/p>\n<p>pursuing against Quilon unit because contrary to what Tribunal has said,<\/p>\n<p>facts relied on by the department are entirely different. Since we are<\/p>\n<p>thoroughly dissatisfied with the order of the Tribunal which was issued<\/p>\n<p><span class=\"hidden_text\">                                     3<\/span><\/p>\n<p>without reference to the materials gathered by the department and based on<\/p>\n<p>which adjudication was made, we set aside the order of the Tribunal with<\/p>\n<p>direction to the Tribunal to rehear the matter after calling for the search<\/p>\n<p>records and after considering the evidence relied on by the adjudicating<\/p>\n<p>officer. The Tribunal is directed to issue fresh orders within a period of<\/p>\n<p>four months from now. The parties will produce copy of this judgment for<\/p>\n<p>timely compliance of the judgment.\n<\/p>\n<\/p>\n<p>                                     C.N.RAMACHANDRAN NAIR<br \/>\n                                     Judge<\/p>\n<p>                                     V.K.MOHANAN<br \/>\n                                     Judge<br \/>\npms<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court The Commissioner Of Central &#8230; vs M\/S.Electornic Control &#8230; on 18 June, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM C.E.Appeal.No. 17 of 2006() 1. THE COMMISSIONER OF CENTRAL EXCISE &amp; &#8230; Petitioner Vs 1. M\/S.ELECTORNIC CONTROL CORPORATION, &#8230; Respondent For Petitioner :SRI.JOHN VARGHESE, ASSISTANT SG For Respondent :SRI.DINESH R.SHENOY The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-134075","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Commissioner Of Central ... vs M\/S.Electornic Control ... on 18 June, 2008 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-commissioner-of-central-vs-ms-electornic-control-on-18-june-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Commissioner Of Central ... vs M\/S.Electornic Control ... on 18 June, 2008 - Free Judgements of Supreme Court &amp; 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