Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 76 - AT - Central ExciseClandestine removal of finished goods - excise duty demand - sponge iron - captive consumption - suppression of facts - penalties - Held that:- The investigation undertaken by Revenue has conclusively established that the production has not been fully accounted in the statutory record maintained in the Excise Division. The total quantum of production of sponge iron has been determined by the adjudicating authority on the basis of various records recovered during investigation and confirmed and admitted by the appellant‟s employees - the total quantum of sponge iron manufactured but not accounted has been arrived at 92.142 MT. The total quantum of finished products manufactured therefrom has been worked out and the excise duty demanded on such quantum of finished products. We find the above basis is fair and is backed by the documents recovered during search - findings of lower authority upheld. Shortage of 5007.290 MT of sponge iron found during physical verification - Held that:- Since the shortage stands admitted, we find no reason to interfere with the demand raised on the finished products on the basis of the above shortage - demand of Central Excise duty which stands confirmed by the Adjudicating Authority against PIL-I, alongwith the penalty imposed, upheld. Penalties on the Directors as well as various employees - Held that:- the adjudicating authority in paragraphs 52 to 59 has elaborately discussed the roles played by various employees of the appellant in the suppression of the actual production and clearance of the finished products without accounting and without payment of duty - penalties upheld. Penalties imposed on the transporter - Held that:- These transporters have played the key role in transporting the finished products such as bloom, billets, ingots clandestinely removed from the factory of the appellant without payment of duty, accompanied by trading bills/ challans - penalties upheld. Penalties on various alleged buyers of the finished products - Held that:- Such buyers have been identified only from the details found in the trading invoices - Revenue authorities have failed to carry out any investigation against them. No evidence is found in record that such buyers have actually received the goods. No statements have been recorded from any of the buyers - penalties not justified. Appeal allowed in part.
|