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2015 (7) TMI 182 - CESTAT NEW DELHI

2015 (7) TMI 182 - CESTAT NEW DELHI - TMI - Evasion of duty - Clandestine removal of goods - No duty paying documents could be produced - Held that:- Allegation against the appellant company, MAPL is that during the period from Jan. 2003 to September, 2003 and from December, 2000to December, 2002, it had indulged in large scale of evasion of duty by receiving huge quantity of unaccounted scrap from certain suppliers of Mumbai, which was used in unaccounted manufacture of Aluminium Sections/Profi .....

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naccounted scrap which was used for unaccounted manufacture of Aluminium Profiles/Sections, which has been cleared clandestinely to various parities including Nagina Enterprises and Tarachand Fauzmal, Mumbai.

Documents recovered from the residential premises of Shri Mahendra Sethia show the sales to a number of other parties, i.e. other than M/s. Nagina Enterprises, M/s. Tarachand Fouzmal, M/s. G. Gajendra & Company, M/s. Ambika Aluminium Profiles & M/s. Deepak Metals, which are not c .....

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es, the duty demand would not be sustainable. According to the appellant duty demand on the quantity of 6,99,851 kgs. of Aluminium Profiles/sections mentioned in Annexure-1 for the period Jan. 2003 to September, 2003 and duty demand on the quantity of 85520 kgs. mentioned in Annexure-1A for the period December, 2000 to October, 2001 is in respect of alleged clearance of Aluminium Profiles and Sections as per the private records maintained by Shri Mahendra Sethai which are not corroborated by any .....

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zed from the godown of M/s.NE, Mumbai. The rest of the duty demand has to be set aside. The penalty imposable on the appellant company, MAPL under Section 11 AC and penalty under Rule 26 of the Central Excise Rules, 2002 imposable on Shri Mahendra Sethia, Shri Manish Raj Jain and M/s.Nagina Enterprises would be in proportion to the duty demand which is confirmed against MAPL.

As regards penalty on M/s. MM, M/s.FAPL and M/s. PTL since there is no allegation that they had received non- .....

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06-EX(DB) - Final Order No.51918-51924/2015 - Dated:- 17-6-2015 - Hon ble Shri Rakesh Kumar, Member (Technical) And Hon ble Shri S.K. Mohanty, Member (Judicial),JJ. For the Appellants : Shri Alok Barthwal, Advocate For the Respondent : Shri Pramod Kumar, DR ORDER Per Rakesh Kumar: The facts leading to filing of these appeals are, in brief, as under:- 1.1 M/s.Madhu Aluminium Pvt. Ltd., Plot No.355-357, Sector-I, Pithampur (hereinafter referred to as MAPL ) are engaged in the manufacture of Alumin .....

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d MAPL as a paid Director on Feb. 2003. M/s. Mahaveer Metal, Mumbai (hereinafter referred to as MM ), M/s. Nagina Enterprises, Mumbai (hereinafter referred to as NE ), M/s. Ficon Aluminium (P) Ltd. (FAPL) and M/s. Peeraj Trade Links (hereinafter referred to as PTL ) all located at 17, Abdul Rehman Street, Mumbai, which deal Aluminium Profiles and Sections. Shri Manishraj Jain is partner of NE. 1.2 On receipt of an intelligence that MAPL are engaged in evasion of duty, the officers of Directorate .....

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ected in the factory premises of MAPL, in godown premises of NE, Mumbai, 352 bundles of Aluminium Profiles totally weighing 20,359 kgs. were found and since the same appeared to have originated from the factory premises of MAPL, Pithampur and since no duty paying documents could be produced , the same were placed under seizure on reasonable belief that the same had been cleared clandestinely by MAPL without payment of duty. 1.2.2 From the residential premises of M/s. Mahendra Sethia, a number of .....

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nium Profiles/Sections during the period from January,2003 to September, 2003, the documents marked as A-8 appeared to be containing similar details for the period from December, 2000 to December, 2002 and similarly, the documents marked as A-13, A-14 and A-15 also appear to be containing the similar details. 1.2.3 In course of the search of the premises of transporters - Capital Road Lines and Parcel Services, 104, Loha Mandi, Indore, the officers seized two correspondence books containing deta .....

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mbai had been booked in the name of Metchem India Ltd. In this regard, Shri Mangal Singh, Manager of Capital Road Lines in his statement dated 18.09.2003 stated that the goods booked in the name of Metchem India, Jainco Aluminium and Narmada Trading by showing them as consignors had actually been loaded from the factory of MAPL under the direction of Shri Jayanti Bhai and the goods had been delivered to NE, Mumbai and M/s. Tarachand Fouzmal, Mumbai. However, on inquiry with Shri Jayant Bhai, Pro .....

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nd also the details of the consignments of scrap dispatched from Mumbai. From the print out, it appeared that the Aluminium scrap was being dispatched from Mumbai in the name of different consignors like M/s. Navdurga Metal, M/s. B.K. Metal, M/s. Ganesh Metal, M/s. Ambika Metal and was being cosigned to M/s. Mallinath Aluminium, New Delhi. However, on inquiry, M/s. Mallinath Aluminium, New Delhi was found to be a fictitious entity, which was not existing. The statement of Shri Tilak Raj Lodaya, .....

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iry with their persons appeared to corroborate the entries in the documents recovered from the residential premises of Shri Mahendra Sethia and it appeared that while MAPL was receiving Aluminium Scrap from various suppliers of Mumbai at their factory at Pithampur, the scrap was being booked for transportation with the Branch Office of Capital Road Lines at Mumbai in the name of fictitious persons as consignors and was being consigned to Mallinath Aluminium, New Delhi, a fictitious entity while .....

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ds and it appeared that the finished goods were dispatched by MAPL to NE, M/s. Tarachand Fouzmal (TF) etc. and these consignments of Aluminium Profiles and Sections were being transported by Capital Road Lines by showing M/s.Metchem India, M/s.Jainco Aluminium and M/s. Narmada Trading as the consignors while the goods were actually being loaded from the factory premises of MAPL. 1.2.6 Inquiry was made with Shri Devendra Dawani, Excise Clerk of MAPL in the factory at Pithampur and on being shown .....

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ence of those weighment slips in the godown of M/s.NE along with the consignment of 352 bundles weighing 20,352 kgs. found in the godown and these goods, therefore, appeared to have been cleared by MAPL, Pithampur without payment of duty. 1.2.7 On the basis of entries regarding dispatch of the finished goods in the documents A/3, A/4, A/5, A/7, A/10, A/11 & A/12 recovered from the residential premises of Shri Mahendra Sethia, the investigating officered prepared a chart enclosed as Annexure- .....

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contained the details of clearances of Aluminium Profiles by MAPL to various buyers during the period from December, 2000 to October, 2001 without payment of duty. The total value of these clearances was determined as ₹ 99,93,578/- and the total duty involved on these clearances was determined as ₹ 15,98,972/-. 1.2.8 On the basis of the entries in the documents A/3, A/4, A/5, A/7, A/10, A/11 & A/12 recovered from the residential premises of Mahendra Sethia, which appeared to be t .....

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enclosed as Annexures -29 to the show cause notice which contains details of the Aluminium Scrap, supplied by different scrap suppliers of Mumbai in the name of M/s. Mallinath Aluminium, New Delhi. The total quantity received as per the details in Annexure A/13, A/14 & A/15 is 48,141 kgs. during the period from 31.05.2003 to 17.08.2003. Similarly, another Chart enclosed as Annexure-30 to the show cause notice based on the entries in the documents A/5 & A/7 was prepared which shows the d .....

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tinely without payment of duty. 1.3 In view of the above investigations, a show cause notice dated 15.03.2004 was issued by the Addl. Director General of Directorate General of Central Excise Intelligence, Ahmedabad to M/s. MAPL, Pithampur, Shri Mahendra Kumar Sethia, Shri Manish Raj Jain, M/s. Nagina Enterprises, M/s. Mahaveer Metal, M/s. Ficon Aluminium (P) Ltd and M/s. Peeraj Trade Link for - (a) recovery of central excise duty amounting to ₹ 1,38,34,497/- (Rs.1,22,35,525/- + ₹ 15 .....

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f the Central Excise Rules, 2002 on Shri Mahendra Kumar Sethia, Manish Raj Jain, M/s. Nagina Enterprises, M/s. Mahaveer Metals Works Ltd., M/s. Ficon Aluminium Pvt.Ltd. and M/s. Peeraj Trade Link. Mumbai. 1.4 The above show cause notice was adjudicated by the Commissioner vide order-in-original dated 18.11.2005 by which he (a) Confirmed central excise duty demand of ₹ 1,38,34,497/- against MAPL, Pithampur under proviso to Section 11A(1) of Central Excise Act, 1944 along with interest on th .....

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2,00,000/- The Commissioner by this order also ordered the confiscation of 20,359 kgs. of Aluminium Profiles seized from the premises of M/s.Nagina Enterprises, Mumbai with option to be redeemed on payment of redemption fine in lieu of confiscation value of ₹ 5 Lakhs. The demand in respect of these goods seized at Mumbai is included in the duty demand of ₹ 1,38,34,497/-. 1.5 Against this order of the Commissioner, these appeals have been filed. 2. Heard both the sides. 3. Shri Alok B .....

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based on the documents recovered from the residential premises of Shri Mahendra Kumar Sethia is 15.09.2003 and the officers visited the factory on 18.09.2003, if the allegation of receipt of unaccounted Aluminium Scrap by MAPL and allegation of unaccounted manufacture and clandestine clearances of Aluminium profiles/sections is correct, the officers would have found unaccounted stock or unaccounted shortage of raw materials or unexplained excess stock or shortage of finished goods but no such ex .....

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atements dated 18.09.2003 16.10.2003 and 17.10.2003 has stated that the note books recovered from his residential premises pertain to the actual figures of sale and purchase made by MAPL but subsequently he retracted these statements stating that the figures contained in these diaries/files seized from him are imaginary figures prepared for the purpose of preparing documents for taking loan from the bank. (3) Though the Department seeks to corroborate allegation of clandestine removal based on t .....

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ingh of Capital Road Lines, Loha Mandi , Indore , wherein he stated that the Capital Road Lines had provided transportation to MAPL for transportation of the goods from the factory at Pithampur to M/s. NE, Mumbai and M/s.TF, Mumbai and that while bilties had been prepared in the name of M/s.Metchem India, M/s.Jainco Aluminium and M/s. Narmada Trading, the goods had actually been loaded from the factory premises of MAPL, Pithampur under supervision of Shri Jayanti Bhai. However, Shri Jayanti Bhai .....

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s, the statement of Shri Jayanthi Bhai of M/s.Metchem India is of no evidentiary value. (5) The false nature of entries in the documents seized from the residential premises of Shri Mahendra Sethia becomes clear from the fact that as per his own statement dated 18.09.2003 and 16.10.2003, he was the Director of MAPL since Fab. 2003. Even Shri Manishraj Jain, the other Director of MAPL in his statement dated 4.2.2004 has stated that Shri Mahendra Sethia had jointed MAPL as Director since Feb. 2003 .....

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is premises. There is no explanation given by the Investigating Officers for this. (6) The Adjudicating Authority has not taken into consideration the evidence on record during cross examination. Shri Mahendra Sethia in his cross examination on 14.2.2005 in an answer to a Question-(4) had stated that records seized from his residence did not reflect true and clear clearance by MAPL and he explained that the purpose of writing those documents was to get the loan from the bank. Similarly, Shri Man .....

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es, Mumbai during his cross examination stated that the computer print-out generated from his computer at the Mumbai Office of the Capital Road Lines had been generated on 15.01.2004 but he was made to sign the same on back date i.e. 7.1.2004. It was obligatory on the part of the adjudicating authority to have taken into consideration the averments made by the witnesses in course of their cross examination which has not been done. (7) Though Shri Mahendra Sethia in his statement dated 16.10.2003 .....

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without payment of duty on finished goods cannot be made. (8) The Department has alleged sale of goods without invoices and without payment of duty to a number of parties, a large number of which are located at places other than Mumbai. The transporters, Capital Road Lines in their statement have only stated that they had supplied the goods to two parties viz. M/s.NE and M/s. TF, whereas perusal of Annexure-1 and Annexure-1A of the show cause notice reveals that there were a large number of oth .....

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notice on the basis of which, the duty has been demanded on the quantity of 6,99,851.06 kgs in Annexure 1 for the period Jan. 2003 to September, 2003 and another duty demand on 85520.34 kgs. of Aluminium Profiles has been made under Annexure1A for the period December, 2000 to October, 2001, but no evidence has been brought on record to show as to how the goods were transported to these alleged buyers of clandestinely cleared goods. Though the name of M/s.Tarachand Fauzmal has figured in the stat .....

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ya, Authorised Representative of Capital Road Lines in his statement dated 7.1.2014 has stated that the computer print out recovered and seized from his office was containing details of the transportation provided by MAPL to Shri Manishraj Jain for transportation of Aluminium scrap from Mumbai to Indore under different names as per direction of Shri Manishraj Jain. He further stated that the computerized print out taken from the Mumbai office of the Transport Company also contained the details o .....

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ad any customer at Mumbai. On being confronted with the computer print-outs taken from Capital Road Link Office at Mumbai, he refused to have dispatched any goods to MAPL. (10) The print-out at the premises of Capita Road Lines, Mumbai was seized on 7.1.2004 and it shows this rundate on all pages except 8 to 13. The pages 8 to 13, containing entries regarding consignments of Aluminium Scrap dispatched to M/s.Mallinath Aluminium, New Delhi show the rundate as 15.01.2004. As per the statement of S .....

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Aluminium profiles/sections from Pithampur to Mumbai, he has not been questioned in this regard. He was not confronted with various documents seized from transporters except the computer printout seized from the premises of Capital Road Lines, Mumbai to which he stated that he has neither received any goods from MAPL nor dispatched any goods to them. (12) The entire duty demand is based on the documents A/3, A/4, A/5, A/7, A/10, A/11, A/12, A/8, A/13, A/14 & A/15 seized from the residential .....

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and no amount relating to sale or purchase has been seized, the duty demand against MAPL based on the above mentioned documents seized from the residential premises of Shri Mahendra Sethia would not be sustainable. (13) The installed capacity of MAPL, as certified by G.M., District Industries Centre, Dhar (M.P.) is 600 MT per shift per year. The unit is running for only one shift per day. If the allegation of clandestine removal during Jan. 2003 to September, 2003 is accepted, it would translat .....

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3 to 30.09.2003 was 1.24 units/kg. Similarly, the labour employed during 1.1.2001 to 30.09.2001, 1.1.2002 to 30.09.2002 and 1.1.2003 to 30.09.2003 were 17, 20 and 29 respectively. (14) The show cause notice alleged that from scrutiny of the note book marked A/3 to A/5, A/7, A/10, A/11 recovered from the residence of Shri Mahendra Sethia , it appeared that a sum of ₹ 29,66,023/- had been paid on account of Shri James Paul by MAPL to Shri Yogesh Dubey and Shri Patelji. These persons were sum .....

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. The Commissioner in the impugned order, after noting that the labour contractors could not be summoned in spite of the efforts of the Investigating Officer, has still relied upon the statement of Shri Devendra Dawani stating that these persons were labour contractors of MAPL. No reliance can be placed on the said entries in the diaries of Shri Mahendra Sethia which show the payment to Shri Yogesh Dubey and Shri Patilji on account of Shri James Paul, when the statement of these persons have not .....

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ich is being alleged. (15) The appellant rely upon the following judgements of the Tribunal and High Courts in support of their plea that the evidence on record is not sufficient to sustain the allegation of duty evasion:- (i) CCE,Chennai Vs. Dhanavilas (Madras) Snuff Co. 2003 (153) ELT 437 (Tribunal-Chennai) Wherein it was held that merely on the basis of entries of dispatch of finished goods in private parcel note book , the allegation of duty evasion cannot be made against an assessee in abse .....

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uch said statement is to be corroborated by the evidence of removal without payment of duty and that such statements without corroborative evidence cannot be considered to be supportive of the allegation of clandestine removal. (iii) Arch Pharmalabs Ltd. Vs. CCE, Hyderabad 2005 (182) ELT 413 (Tribunal-Bang.) Wherein it was held that commercial invoices and delivery challans prepared by the appellant solely for raising higher bank loans and entries made in the private diary cannot be made the bas .....

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purchase of raw material, manufacture of final products, flow back of money or any seizure from or any statement from purchasers. (v) CCE, Chandigarh Vs. Laxmi Engineering Works 2010 (254) ELT 205 (P&H) Wherein Hon ble Punjab & Haryana High Court held that even if some private records are discovered during raid and some of such records are corroborated by some supportive evidence, for establishing the allegation of clandestine removal and duty demand based on the same, it is necessary to .....

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. Joint CDR defended the impugned by reiterating the findings of the Commissioner in the impugned order and in this regard, he emphasized the following points:- (1) The duty demand is based on the records A/3, A/4, A/5, A/7, A/10, A/11, A/8, A/13, A/14 & A/15 recovered from the residential premises of Shri Mahendra Sethia, one of the Directors of the appellant company. These records are written by Shri Mahendra Sethia in his own handwriting and the same in his statements had been explained b .....

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statements, he has admitted that the scrap supplied by one Shri Tulsi was not entered in the raw materials register though the Aluminium scrap supplied by Shri Jugraj was entered in the raw materials register. Besides this, he also explained that the entries with Code N , pertained to sale of the Aluminium Profiles to M/s. Nagina Enterprises and the entry Code No. TF pertained to the sale of Aluminium Profiles to Tarachand Faujmal of Mumbai. Shri Mahendra Sethia in his statement had explained p .....

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espect of these dispatches to Mumbai was being paid by Shri Manishraj Jain, Director of MAPL, who was also a partner of M/s.Nagina Enterprises. (4) The documents recovered from the transporters clearly indicated that the consignments of Aluminium Scrap were being booked by Shri Manishraj Jain from Mumbai by showing bogus names as consignors and showing M/s.MallinathAluminium, New Delhi as consignee and all these consignments were being received in the factory of MAPL. On enquiry, Shri Mallinath .....

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lips had been prepared by him claimed that no goods had been cleared. There is no explanation as to how the weightment slips prepared by Shir Davendra Dawani were recovered from the godown of M/s.Mahaveer Metals/M/s.Nagina Enterprises at Mumbai alongwith 352 bundles of Aluminium Profiles weighing 20359 kgs. From this, it is clear that this consignment of Aluminium Profiles had been manufactured in the factory of MAPL at Pithampur and had been clandestinely cleared to M/s.Nagina Enterprises at Mu .....

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s and Profiles. Their main raw materials is Aluminium scrap from which they manufacture Aluminium ingots, which, in turn, are used in extrusion machine for manufacture of Aluminium Profiles/sections. Certain quantity of Aluminium ingots/billets are purchased from outside also. The appellant company is a Private company of which there are three Directors, Shri Manishraj Jain, Shri Mohan Lal Sethia and Shri Mahendra Sethia. There is no dispute about the fact that Shri Mahndra Sethia is a paid Dire .....

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Mahaveer Metal Works, M/s.Ficon Aluminium Pvt. Ltd. and M/s. Peeraj Trade Lines, all located at 17, Abdul Rehman Street, Mumbai. These firms are engaged in trading of Aluminium Sections and Profiles. 7. The allegation against the appellant company, MAPL is that during the period from Jan. 2003 to September, 2003 and from December, 2000to December, 2002, it had indulged in large scale of evasion of duty by receiving huge quantity of unaccounted scrap from certain suppliers of Mumbai, which was u .....

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ofiles valued at ₹ 22,39,490/-from the godown at 157, Pangera Pole, 3rd Lane, Mumbai of Nagina Enterprises along with hand written weighment slips containing details of size and number of Aluminium profiles coupled with statement dated 12.01.2003 of Shri Devendra Dawani, Excise Clerk of MAPL stating that weighment slips recovered from the above mentioned premises had been prepared by him but he did not know about the consignee of the goods; (c ) The documents recovered from the search on 1 .....

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nment of scrap from Mumbai to M/s.Mallinath Aluminium, Delhi and consignments of Aluminium Profiles from MAPL to Mumbai. (e) Inquiry report in respect of Mallinath Aluminium, Delhi indicating that it was a fictitious firm and statement of Shri Tilak Raj Lodaya stating that the consignments of scrap being sent in the name of M/s.Mallinath, New Delhi were being unloaded at the factory premises of MAPL, Pithampur and the transportation charges for the same were being paid by Shri Manishraj Jain; (f .....

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and the date of weighment had been recovered from the residential premises of Shri Mahendra Sethia which indicated that the consignments mentioned in the computer printout which were consigned to M/s.Mallinath Aluminium, New Delhi had actually been unloaded at the factory premises of MAPL, Pithampur; (g) In respect of 34 consignments of Aluminium Scrap mentioned in computer print-outs seized at Mumbai Office of Capital Road Lines which had been dispatched from Mumbai in the name of Mallinath Al .....

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goods covered under the LRs were being unloaded at the factory premises of Pithampur and it has been alleged that it is this unaccounted scrap which was used for unaccounted manufacture of Aluminium Profiles/Sections, which has been cleared clandestinely to various parities including Nagina Enterprises and Tarachand Fauzmal, Mumbai. The duty demand of ₹ 1,22,35,525/- whose details are mentioned in Annexure A-1 to show cause notice is based on the documents A/3, A/4, A/5, A/6, A/7, A/8, A/1 .....

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A-8 recovered from the residential premises of Mahendra Sethia. On the basis of these entries Annexure-1A has been prepared giving the details of the calculation of this duty demand. 8. While the basic documents for calculation of duty demand against MAPL for the period from Jan. 2003 to September, 2003 and December, 2000 to October, 2001 are the files/documents marked as A/3, A/4, A/5, A/7, A/8, A/10 , A/11 and A/12 seized from the residential premises of Shri Mahendra Sethia read with his stat .....

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find that in respect of the sales to certain parties of Mumbai M/s. NE, Mumbai, M/s.TF, Mumbai etc. the details of the sales as recorded in the documents recovered from the residential premises of Mahendra Sethia are corroborated by the entries in the entry Register and computer printout recovered from the office of Capital Road Lines and Parcel Services at Indore and Mumbai. Annexure 32 to show cause notice gives the details of such consignments based on the records of Capital Road Lines at In .....

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ses and some parties of Mumbai are shown with consignors name as M/s.Metchem India. However, Shri Mangal Singh, Manager of Capital Road Lines and Parcel Services in his statement date 18.09.2003 has stated tht the goods booked in the name of M/s.Metchem India had actually been loaded from the factory premises of MAPL under the directions of Shri Jayanti Bhai. Shri Jayanti Bhai was found to be proprietor of M/s.Metchem India and was an ex-employee of MAPL. Though Shri Jayanti Bhai in his statemen .....

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ntial premises of Mahendra Sethia and which as per the records of the transporters M/s. Capital Road Lines had been transported to Mumbai, the claim of Shri Mehendra Sethia that these entries do not represent real transaction is difficult to accept as the documents recovered from residences of Shri Mahendra Sethia are corroborated not only by the documents recovered from the transporters Capital Road Lines, Indore, but also from the fact that on date of search of the godown of M/s. Nagina Enterp .....

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of his cross examination, at the time of adjudication, Shri Devendra Dawani has stated that he had prepared these weighment slips on the instructions of Shri Mahendra Sethia but no goods had been cleared, the fact remains that there is no explanation for presence of weighment slips prepared by Shri Devendra Dawani of MAPL at the godown of M/s.NE, Mumbai alongwith 352 bundles of Aluminium Profiles weighing 20,352 kgs. From this, it is also clear that 20,352 kgs. of bundles of Aluminium Profiles s .....

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Capital Road Lines, Mumbai had been dispatched from Mumbai to M/s. Mallinath Aluminium, New Delhi under truck no.MP 09KB1868, under Truck no.6681 MP 09012, Truck No.MP 09 KB 8416, MP 09 KB 2448, MP 09KP 8030, MP 09KB 100 and MP 0906527 on different dates during the period from 31.05.2003 to 17.08.2003, which on inquiry of Shri Mallinath, was found to be a non-existent company. From the residential premises of Mahendra Sethia the weighment slips of these consignments mentioning the truck nos. hav .....

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rs and which are consigned to M/s.Mallinath Aluminium, New Delhi, the details of which are mentioned in the computer print recovered from the transporters premises at Mumbai. The details of these consignments are also found at page-130 to 131 of file A/13 recovered from the residential premises of Shri Mahendra Sethia. 8.3. In view of the above discussion, we hold that the duty demand in respect of the consignments cleared by the appellant company to M/s. NE, Mumbai, whose details are given in A .....

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from the residential premises of Shri Mahendra Sehtia, except in respect of M/s.NE, no inquiry has been made with other parties M/s. TF, M/s. Ambika Aluminium Profiles, M/s. Deepak Metals and M/s. G. Gajendra & Co., Mumbai. They have not been even show caused for imposition of penalty under Rule 26 of the Central Excise Rules, 2002. In respect of M/s. Tarachand Fouzmal, M/s. Ambika Aluminium, M/s. Deepak Metals and M/s. G. Gajendra & Co., other than the computer print out seized from th .....

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the residential premises of Shri Mahendra Sethia show the sales to a number of other parties, i.e. other than M/s. Nagina Enterprises, M/s. Tarachand Fouzmal, M/s. G. Gajendra & Company, M/s. Ambika Aluminium Profiles & M/s. Deepak Metals, which are not corroborated by any documents recovered from the premises of the transporter, Capital Road Lines & Parcel Services. These parties are from places other than Mumbai. No inquiry has been conducted with these parties. In our view, in re .....

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on the quantity of 85520 kgs. mentioned in Annexure-1A for the period December, 2000 to October, 2001 is in respect of alleged clearance of Aluminium Profiles and Sections as per the private records maintained by Shri Mahendra Sethai which are not corroborated by any documents of the transporters, and in respect of which absolutely, no inquiry has been conducted. In our view, the duty demand on this quantity would not be sustainable. 10. In view of the above discussion, the duty demand is uphel .....

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