TMI Blog2009 (3) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged duty evasion by M/s. Rajaguru Spinning Mills (P) Ltd. (hereinafter referred to as RSM), Central Excise officers unearthed certain incriminating documents such as party-wise ledger etc. at the premises of M/s. KTC who was a trader in cloth and yarn, and also broker for purchase/sale of yarn to M/s. RSM, M/s. Chola Spinning Mill (hereinafter referred to as CSM) and M/s. RSM. Evasion of Central Excise duty by M/s. CSM was noticed from the documents seized at M/s. KTC premises which were visited by Central Excise officers on 10-9-1997. The stocks and accounts of M/s. CSM were verified in the presence of Shri P. Sengodan and its Director Shri Kumarasamy and it was revealed that CSM had been adopting lesser value for the purpose of calcu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned in the loose sheets as cleared during the period 1-7-1997 to 11-8-1997 is 2,613/- bags whereas M/s. CSM actually cleared 2757 bags. The differential duty demand is for 5290 bags. There is no worksheet to show how this quantity has been arrived at. The loose sheets are stated to have been admitted by the Director of M/s. CSM to have been written by one Shri Subramaniam, who was the temporary employee. However, Subramaniam s statement has not been recorded. According to the Revenue, the sheets indicated the actual price of yarn sold by M/s. CSM and this price exactly matched the one recorded in the seized records of M/s. KTC. A few examples are set out for better understanding of the alleged evasion by CSM :- Invoice No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have categorically stated that they did not know anything about the loose sheets and have never issued instructions to any one to maintain the sheets. We have perused the loose sheets relied upon. At the extreme left corner some figure is scribbled for example, 700, 650 etc. The department has taken this to represent the actual rate per bag of 5 kgs and since the amount shown in M/s. KTC invoices was less than this actual rate, the respondents have been charged with under valuation. However, there is no basis for the conclusion that these figures represent the rate at which each bag of yarn was sold to M/s. KTC. Statement of Shri Subramaniam has also not been recorded. The statement of Sri Ram Rathan Kothari does not implicate M/s. CSM and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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