Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 662 - CESTAT BANGALOREClandestine manufacture and removal of excisable goods - Imposition of penalty - Held that:- claim of the appellant that TMT bars were not manufactured by them but was part of the trading activity of A.K. Agarwal firm and this assertion was made because the department had found the details in the computer showing sale of TMT bars. It was stated that the computer belonged to A.K. Agarwal firm and was kept in the factory since the M.D and the owner happened to be same and it was also stated that TMT bars was only a part of the trading activity. In fact it appears to be a fact the claim of the appellant that TMT bars were traded itself is wrong and in fact even the invoices in the name of A.K. Agarwal firm did not show any transaction of TMT bars. Only paper transactions or paper records have been created. This is the prima facie conclusion that can be drawn based on the records at this stage. Needless to say this is a very complicated case but fact remains that as regards TMT bars it was the claim of the appellant that this was a trading activity of the firm. The situation is nobody can understand what exactly happened. At this stage therefore the only option that would be available is to rely upon the paper records which are recovered which show that there was a trading of TMT bars which was kept in the administrative office and appellants themselves have claimed that it was a trading activity of the firm and that the firm was trading in TMT bars which has been found to be totally false. The appellant is engaged in the manufacture of TMT bars and therefore when they accepted it was a trading activity of the firm and the firm was owned by the M.D. and firm was not undertaking such activity, the obvious conclusion that would emerge is that the first appellant has manufactured TMT bars and has to account for the same. Therefore we find that appellant has not been able to make out a prima facie case in respect of 3.21 crores. Even if the appeal has to be remanded it cannot be remanded without considering the balance of convenience and justice to the public at large and the Government. In our opinion, having retained the money for more than 5 years, the appellant should deposit at least amount which we have found prima facie payable with a small portion of the interest that is payable if the matter is remanded. Normally the matter should be remanded after noting compliance but to avoid further lapse of time, we consider that it would serve the interest of justice and public interest if the matter is sent back at this stage itself. Therefore the appellant is directed to deposit an amount of ₹ 5 crores - subject to the order of pre-deposit matter remanded back.
|