TMI Blog2009 (1) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... om CFI and imposed penalties on CFI and S/Shri K.A. Shabu, M.A. Nishad, Mujib Rahim P.D. Robin. He confiscated ninety four pieces of photocopiers seized from the premises of CFI and offered CFI an option to redeem them on payment of a fine of Rs. 20 lakhs. The penalties ordered had taken into account also the confiscation of these machines. This order dated 28-3-07 of the Commissioner was challenged by CFI others. Vide Final Order No. 633-637/08 dated 2-7-08 [2008 (231) E.L.T. 224 (Tribunal)], the Tribunal affirmed the finding of evasion by CFI. The evasion had been quantified by clubbing clearances of CFI and its fronts. Since the front firms had not been put on notice before holding them as dummies and clubbing their clearances with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cases considered by the judicial authorities cited and relied upon to pass the Final Order, the dummy units were real and had made clearances. Demand for duty on aggregate clearances of the dummies and the main unit had been vacated in each of those cases for not putting the dummy units on notice before adjudicating the demand of duty. The Tribunal had wrongly applied the ratio of the decisions cited by CFI others in vacating the demand and penalties. (ii) The second error sought to be rectified is the order vacating the redemption fine ordered in the order of the Commissioner for releasing the confiscated 94 pieces of photocopiers. It is pointed out that this order was not legally correct. The Commissioner could validly order a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Commissioner of Trade Tax, U.P. reported in 2008 (221) E.L.T. 16 (S.C.) = 2008 (9) S.T.R. 113 (S.C.) in support of this argument. 5. We have carefully considered the ROM petition, the cross objections and the submissions by both sides. We find that CFI had actually made all the impugned clearances clandestinely and received proceeds. The dummies were created by CFI to evade payment of duty. They existed only on paper. As manufacturers of photocopiers, they never existed. In the Poly Resins v. CCE [2003 (161) E.L.T. 1136 (Tri.)] relied on by us such units are dummies. The ratio of all case law relied on by us is that such units should be heard before treating them as dummies and treating their clearances as those of the main unit. We ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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