TMI Blog2014 (4) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... RRs which are in their name for the reason that the iron ore had been transported in the rates assigned to them, the iron has not been received by them but has been received by others against the endorsements on the RRs by them and these facts can be clarified only when the RRs are made available to them but the same have not been made available by the department in spite of their request. Since, the department's case is based on the documents received from the railways and also recovered from the transport company, all these documents have to be supplied and non-supply of these documents would result in denial of natural justice. Similarly, when in respect of the RRs endorsed to M/s Jai Ambey Mineral it is being alleged on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... railways up to the nearest railway siding of Uslapur at Bilaspur and from there, the iron ore was being transported by road through a transporter M/s Gyan Singh. The transportation of iron ore up to the Uslapur by Railways was under the documents called Railway Receipts (RRs) issued by the Railways. As per the practice being followed by the Railways, the rakes assigned to a particular consignee of iron ore could also carry the iron ore of some other person and in that case, the RR is endorsed by the consignee to the person to whom the consignment of iron ore belonged. The Jurisdictional Central Excise officers obtained the information regarding the consignments of iron ore received by the appellant company through railways either under thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fference of 43,198.92 M.T. of iron ore between the quantity which the appellant company is supposed to have received on the basis of the Railways RRs and the quantity which has been accounted for by them in their records. By assuming that 160 M.T. of iron ore yields 100 M.T. of sponge iron, the officers estimated the quantum of unaccounted production of sponge iron. Beside this, it was also found that the appellant company had received Goods Transport Agency (GTA) service from M/s Gyan Singh but had not paid the service tax as service recipient in respect of the same and total service tax payable by them was Rs. 1,40,846/-. It is on this basis that a show cause notice dated 08/1/10 was issued to the appellant company and its Director Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for hearing of the stay applications only, after hearing the same for some time, the Bench was of the view that the matters can be taken up for final disposal. Accordingly, with the consent of both the sides, the matters were heard for final disposal. 4. Shri Somesh Arora, Advocate, the learned Counsel for the appellants, pleaded that the main duty demand is the demand of Central Excise duty of Rs. 4,59,81,117/- from the appellant company alongwith interest and equivalent amount of penalty, that this duty demand has been confirmed on the basis of assumption that during the period of dispute, the appellant company have received 43,198.92 M.T. of unaccounted iron ore which has been used by them in manufacture of unaccounted sponge iron, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re actually received by the appellant company had been determined on the basis of the RRs procured from the railways, that in the RRs wherever the consignments had been received in the name of other persons but the same were meant for the appellant company, those persons have endorsed the RRs in the name of the appellant company, that in some cases the RRs originally in the name of the appellant company have been endorsed by them in the name of others, that the quantity of iron ore received has been determined on the basis of the RRs which are in the name of the appellant company and have not been endorsed by them to others or the RRs which had been endorsed to the appellant company, that in the case of RRs endorsed to M/s Jai Ambey Mineral ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them and these facts can be clarified only when the RRs are made available to them but the same have not been made available by the department in spite of their request. We find that the department had supplied only a chart prepared by the Investigating officer showing the receipt of iron ore based on the Railways documents (RRs) and the receipt of iron ore accounted for by the appellant in their records and, as such, the railways records - RRs have not been supplied. Since, the departments case is based on the documents received from the railways and also recovered from the transport company, all these documents have to be supplied and non-supply of these documents would result in denial of natural justice. Similarly, when in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
