TMI Blog2007 (10) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... erification, 360 pieces of stock of grey fabrics was found short than the recorded balance. On enquiry, Shri Onibhai admitted that the said 360 pieces of grey fabrics were fully processed by them and were cleared without cover of any Central Excise invoice and without payment of duty in the open market. He also expressed his willingness to pay the duty leviable on the said clearance. A statement of Shri Onibhai was recorded on 7-2-98 agreeing to the above fact. 3. It is further stated seen that the other two units M/s. Lucky Steel and M/s. Goodluck Trading Co., which belongs to the appellant s family were simultaneously put to search on 6-2-98. The appellant s brother Shri Sadik Ismail Baluwala is the partner in M/s. Lucky Steel as well as in M/s. Goodluck Trading Co. He is also a director of the appellant-unit M/s. Lucky Dyeing Mills (P) Ltd. During the course of search of the said two units, incriminating documents like file containing job cards with delivery challan, loose papers, computer print-out etc. were recovered from the said premises. On interrogation, Shri Sadik Ismail Baluwala stated that the same were details of production and clearances of processed man-made fabric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o offered to deposit the duty involved. 7. On the basis of statements of various persons recorded and the scrutiny of the documents recovered and the statements of Shri Onibhai Baluwala and Shri Sadik Ismail Baluwala, directors, proceedings were initiated against the appellant alleging clandestine removal and consequent confirmation of demand of duty along with confirmation of interest. Notices also proposed imposition of personal penalty. The said show cause notice stands adjudicated by the Commissioner vide which he has confirmed demand of duty of Rs. 1,82,13,824/- along with imposition of personal penalty of identical amount, under provisions of Section 11AC of Central Excise Act, 1944. In addition, personal penalty of Rs. 20,000/- was imposed on Shri Onibhai Ismail Baluwala under Rule 209A of the erstwhile Central Excise Rules, 1944. The said order is impugned before us. 8. We have heard Shri Hardik Shah, authorized representative appearing for the appellant and Shri D.S. Negi, learned SDR for the Revenue. Written submissions also stand filed by the appellant which have been gone through by us. 9. After appreciating the submissions made by both sides and after going throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-2-98 and 10-2-98 that Shri Onibhai has admitted the offence, but even in his statement recorded on 19-5-01 i.e. as late as after a period of 3-4 years, he has again admitted offence of clandestine removal. In this scenario, even the fact that the statements were retracted by filing an affidavit before the notary, will not help the appellant especially when the said affidavit after having been sworn in before the notary, was never placed before higher officers of the department. Under these circumstances, the Commissioner has rightly concluded that the explanation given by the appellant is in the nature of a simple denial, no effective rebuttal to the voluminous documentary evidence has been put on record. 10. The appellants have strongly contended that the cross-examination of Panchas witnesses, of Shri Manoj Patil and various traders was not afforded and as such it has resulted in denial of principle of natural justice and the demand should be set aside on this ground alone. We find from the impugned order that the Commissioner has effectively dealt with the appellant s request for cross-examination of the various persons. As regards the cross-examination of Pancha witnesses, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his is not the behaviour to be expected from Shri Onibhai if the officers were really threatening or coercing him in any way. Further, as late as 19-5-01, (nearly 3 years after the search), Shri Onibhai in his statement before the Central Excise Officers admitted the validity of the investigations. As is seen from the above observations made by the adjudicating authority, that not only Shri Onibhai has admitted that the said documents belonged to them but Shri Sadik who is the director in the appellant s company and partner in the other two units has also admitted in his statement that the said documents as well as computer retrievals belonging to M/s. Lucky Dyeing Mills (P) Ltd. Apart from that Shri Onibhai has also explained in his initial statement that their excise clerk Shri Brij Kishore was the author of the said documents. Further, diary and other documents were bearing the stamp of the appellant s mill. No. explanation is coming forth from the appellant as to how the said documents bore the name of the appellant, if they do not belong to them. The said fact stands admitted by Shri Onibhai even in his statement dated 19-5-01, which was recorded almost after a period of 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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