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TMI Blog2011 (2) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... led that the quantity of Sodium Silicate manufactured was disproportionate to the quantity of Soda Ash consumed and, therefore, show-cause notices were issued to each of the four above mentioned units, proposing recovery of differential duty and proposing penal action. The demands were confirmed and penalties imposed by the Commissioner vide Orders-in-Original No.4 to 7/95 dt. 21.2.95 as per details herein below :- S.No. Name of the factory Duty demanded Rs. Penalty imposed Rs. 1. M/s.Jayadevi Industries 3,87,112.44 3,87,112.44 2. M/s.Manohara Saraswathi Glass Works 6,27,677.09 75,000/- 3. M/s.Mahashree Aruna Chemicals 4,36,678.56 50,000/- 4. M/s.Sowbagyalakshmi Silicates 7,56,633.09 75,000/- Penalty of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded in their Form IV raw materials accounts as submitted by the learned consultant above. This issue also needs to be reconsidered. c. The Commissioner has relied upon the weighment done at the weighbridge near Chennai, yet there is no evidence relating to the same which has been supplied to the Appellants as can be seen from the annexure to Show Cause Notices. Therefore we are of the considered opinion that this decision to rely on the weighment has been taken without disclosing proper evidence relating thereto to the appellants which is against the principles of natural justice. d. The ground taken by the learned consultant that some of the invoices were in different names than those referred to in para 28 of the Show Cause Notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... silicate in solid form which would be produced from the raw materials and adding extra quantity of sodium silicate cleared in liquid form. If the full quantity of 2167.000 kgs. of solid sodium silicate manufactured was converted into liquid, it should have resulted in production of 3900.778 kgs. of liquid silicate whereas the RG.1 shows only 2692.315 kgs of liquid silicate and, therefore, the investigating officers came to the conclusion that the quantity of solid and liquid accounted are separate and not converted from solid to liquid. However, I note that it would be correct to work out the ratio assuming that all sodium silicate is first accounted in solid form. The ratio of soda ash to liquid sodium silicate is 29% for M/s. M/s.Sowbagya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tner, TN-01-C-6769 belongs to M/s.Manohara Saraswathi Glass Works and TN-01-D-1377 belongs to M/s.Mahashree Aruna Chemicals. The man behind the functioning of these four units i.e. the person who was actually managing all the affairs of the four units is A.Ganesan who has admitted clandestine removal of the goods in question without payment of duty in the lorries whose numbers are mentioned herein above and the submission that Shri Ganesan was threatened into an admission of clandestine clearance cannot be accepted as it is an after-thought, raised only before the lower appellate authority. The confessional statements of other witnesses have also not been retracted. The assessee s contention is that sodium silicate liquid can be transported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Manager of M/s.Balasubramaniaswamy Traders. Balamurugan and S.Amirtharaj, Accountants of Jayadevi Industries corroborated the statements of Shri A.Ganesan and A.Subburathinam between whom the entire transactions of purchase of soda ash without bills had taken place. Similarly, M/s.T.Ganesan of M/s.Siddhi Vinayaga Agencies had stated during investigation, that he had supplied silicate to Shri A.Ganesan of Jayadevi Industries without bills due to stiff competition in the market, financial conditions etc. None of these statements recorded earlier were retracted and it is only during cross-examination that the above witnesses changed their stand and, therefore, their original statements have rightly been relied upon by the adjudicating authori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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