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2018 (9) TMI 1133 - AT - Central ExciseClandestine removal - allegation was that M/s HAL was supplying Ferro-alloys to M/s HSAL without any invoices - The appellant have not challenged the facts or evidences in this case nor have they contested their involvement in abetting evasion of duty. The main plea of the appellant is that they were supplier of the raw material and did not deal with the excisable goods, which were liable to confiscation and they had no knowledge that the goods were liable to confiscation. Held that:- The appellants were supplying Ferro Alloys to M/s HSAL. Invoice book was recovered from their godown, which had parallel invoice nos. and invoices from that invoice book had been used in clearance of the Ferro Alloys. The daily report were also found, which contained each and every activity taking place in godown, which confirms that various types of Ferro Alloys were dispatched to M/s HSAL without the cover of the invoices, or the billing was done but no material was dispatched, or the goods were dispatched to M/s HSAL, but the invoices were issued to some other parties. All these facts and evidences clearly show that various employees and the Director of the appellant were clearly in the knowledge that the supplies were being made for goods, which were liable to confiscation. In fact, any excisable goods cleared by appellant without cover of invoices are also liable to confiscation - The active involvement of the appellant in the entire modus operandi is thus established in relation to fraudulent supply of raw material without payment of duty to M/s HSAL in a well organized manner thereby abetting evasion of duty by M/s.HSAL. Penalty - Held that:- In the instant case, Ferro Alloys were dispatched to M/s HSAL without the cover of the invoices, or the billing was done but no material was dispatched, or the goods were dispatched to M/s HSAL, but the invoices were issued to some other parties. Clearly, the appellant were not merely sending raw material without issuing invoices but were also engaged in other modus operandi. All these were done with sole intent to enable evasion of duty - thus, penalty has rightly been imposed on the appellants for their collaborative role in the conspiracy of clandestine removal of goods by M/s HSAL and enabling evasion of duty - however, quantum of penalty reduced. Appeal allowed in part.
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