Summary
- The CESTAT Chennai has quashed a ₹1.71 crore excise demand against Geetham Steels Pvt. Ltd., citing lack of admissible evidence for allegations of clandestine manufacture and removal of mild steel ingots.
- The Tribunal found significant gaps in the investigation, including inadequate verification of transporters and insufficient corroboration of electronic evidence used by the Department.
- It ruled that the denial of CENVAT credit and associated penalties were unjustified, as the principal demands lacked reliable proof.
- This decision underscores the necessity for strict adherence to evidentiary standards in excise investigations, particularly regarding electronic records and witness statements.
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