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2014 (3) TMI 713 - AT - Central ExciseDuty demand - misuse of area based exemption - fraudulent showing expansion of manufacturing capacity - Benefit of Notification No.49-50/2003 dated 10/6/2003 - Notification No.76/2003-CE dated 5.11.2003 - Mis dclaration of goods - Penalty u/s 11AC - Held that:- Commissioner (Appeals) has not appreciated finding of adjudicating authority where investigations conducted by department have clearly brought out that fake transaction had been undertaken with the sole motive of showing procurement of machines and subsequently to show 25% expansion of existing capacity which was requirement of for eligibility for availment of exemption under Notification no..49-50/03 as amended. Above transaction could not be possible without Shri Ramesh Gupta who organized paper transaction with sole motive to avail benefit of area based exemption. I have no hesitation to hold that findings of Commissioner (Appeals) are erroneous as the Commissioner (Appeals) held that no doubt two machines actually supplied which were found installed in the factory. These observations are without any evidence and contrary to the investigations reported above. His basis for saying that no action has been taken against supplier for mis-declaration cannot ipso-facto result in granting unintended and fraudulent benefit to the respondent - Revenue has clearly made out a case for non-grant of exemption under Notification No.49-50/03 against the respondent - Decided in favour of Revenue.
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