TMI Blog1992 (12) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... rected against the order of the Collector of Central Excise, Madras, dated 28-3-1983 levying a duty of Rs. 2,89,957.83 and penalty of Rs. 2,00,000 on the appellant under the provisions of the Central Excises and Salt Act, 1944, hereinafter referred to as the `Act . 4. Shri Doulatmal Chordia is the sole proprietor of the appellant concern, which is a small scale unit at Madras manufacturing electric wires and cables enjoying the small scale exemption notifications. On 22-2-1982 the Central Excise Preventive Officers visited and searched the appellant s factory and also the shop M/s. Chordia Electricals belonging to the same proprietor and also the residential premises of the proprietor, his friend Desraj Verma, residence of accountant P. K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies, two files with the words Indian Cable Industries containing communications addressed to Electricity Board and others and seized them under a mahazar. 5. Shri Doulatmal Chordia, the proprietor, gave a statement before the authorities on 22-2-1982 to the effect that the appellant s factory belonged to him and he was manufacturing aluminium/copper cables, PVC insulations with brand name MOCRO and another brand name MEMYLE and the shop M/s. Chordia Electricals also belonged to him and he had filed necessary declarations under the Central Excise Rules for the years 1979-80, 1980-81 and 1981-82 and that the turnover of M/s. Indian Cable Industries was Rs. 3,00,000 for 1979-80, Rs. 35,00,000 for 1980-81 and Rs. 7,00,000 for 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant, contended that the appellant s factory is a small one with a limited power potential and the burden is on the Department to establish a nexus between the production effected in the appellant s factory and the supply made. The Department has not done any investigation with reference to the purchase of raw materials, consumption of electricity and the finding of the adjudicating authority against the appellant on the ground that many invoices under seizure are fictitious is not correct. It was urged that consequent on heavy orders received by the appellant for supply of wires and cables by Tamilnadu Electricity Board and others the appellant had to buy goods from Delhi. The learned counsel further assailed the reasoning of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out is also not correct. It was, therefore, urged that the impugned order is not sustainable on facts and in law and at any rate the quantum of duty worked out is incorrect and imposition of penalty is not called for nor such huge penalty imposable under any circumstance. 7. The learned SDR placed reliance on the statement recorded from the persons and documents seized and the other evidence on record and adopted the reasoning of the adjudicating authority. 8. We have carefully considered the submissions made before us. The issue for consideration is whether the entire quantity of wires and cables sold by the appellant as evidenced by their sales invoices for the period 1980-81 was actually manufactured in the appellant s factory and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the copies of the invoices recovered from the appellant s factory they had merely quoted the value of the goods and the collection of excise duty is conspicuous by its absence. The proprietor Shri Chordia has not denied this fact of having collected excise duty from the Electricity Board which fact admittedly was suppressed in the office copy of the invoice. These circumstances would only point to the conclusion that the appellant had resorted to this strategy to evade payment of excise duty. Apart from this, scrutiny of certain GP 1s will reveal that the appellant had issued bogus GP 1s for removal of the excisable goods from the factory to residence, which contains bogus L4 Nos., PLA No., PLAs S. Nos. and these circumstances would onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The seizure of various documents set out above particularly forged gate pass, fabricated and manipulated copies and other copies of GP 1 and seizure of unused gate pass, bogus and blank invoices of certain manufacturers of Delhi and seizure of a good number of rubber stamps, admitted collection of excise duty from Electricity Board and suppression of the same and other circumstances would only lead to the irresistible conclusion that Shri Chordia was resorting to excise evasion and circumvention and was systematically adopting all means he could think of to achieve this end. 9. We are not inclined to accept the additional evidence now sought to be filed at this very late stage after the lapse of several years and it is well-settled that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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