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M/s Bharat Industries Versus Commissioner of Central Excise, Coimbatore

2015 (10) TMI 1128 - CESTAT CHENNAI

Duty demand - Imposition of penalty under Rule 9(2) read with Rule 173Q - Clubbing of clearances - Held that:- There was no material on record to suggest that fictitious units were in reality manufacturers. Those were neither registered with the Excise Authorities nor machinery were installed by them to carry out manufacture. There is no evidence of any purchase of raw material, consumable or packing material nor payment of electricity charges to prove manufacture was made. There was also no mus .....

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of duty in adjudication untouched by this order subject to recomputation due to valuation defect caused by Revenue.

There was no allegation as to under-valuation in the show-cause notice. There is also no evidence on record from Revenue to prove that there was under-valuation of the clearances made. Therefore, adjudication on such count of arbitrary valuation fails and value disclosed by appellant shall be followed to recompute duty liability of appellant on clubbing all four clearanc .....

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- as well as penalty of ₹ 5,00,000/- under Rule 9(2) read with Rule 173Q of the Central Excise Rules, 1944. So also penalty of ₹ 10,000/- was imposed on different persons involved in the breach of law alleged by Revenue. But those persons are not in appeal. Therefore, present appeal relates to manufacturer-appellant only. 2.1 Learned counsel for appellant submitted that three fictitious concerns were not created by it. Those were genuine concerns and their clearances were different f .....

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ppellant, the Adjudicating authority re-assessed the clearances making over-valuation thereof adopting trading value which is inconceivable. In absence of such allegation in the show-cause notice Adjudication is bad and ill founded as well as fails to stand. 2.3 So far as penalty is concerned, learned counsel submits that even if there is clubbing then imposition of penalty to the extent of ₹ 5,00,000/- is unwarranted by Rule 9(2) read with Rule 173Q of Central Excise Rules, 1944. 3. Reven .....

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