9911796707
TMI Blog2007 (7) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... und shortage of 450 mts. of iron and steel scrap materials valued at Rs. 31,50,000/-. (b) Shri Rajnibhai Chimanlal Parikh, Director of the company, in his statement dated 6-9-2001 stated that the raw materials found short were, in fact, cleared by them as such without issuing any invoice, without payment of Central Excise duty and without accounting the same in any of the records as they were in urgent need of cash flow. (c) They paid a sum of Rs. two lakhs on 7-9-2001 and balance of Rs. 3,04,000/- on 9-9-2001. (d). Show cause notice dated 2-1-2006 was issued and the Original Authority vide his order dated 31-3-2006 passed orders confirming the demand of duty of Central Excise duty of Rs. 5,04,000/- on 450 mts. of iron steel scrap valued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment is still pending for regularization and finalization and hence SCN was slapped on the appellant on 2nd January, 2006. On part of the departmental officers in issuing SCN after a lapse of nearly four and half years there exists some liability against them I do find that there is no case at all, no evidence at all, no allegation at all for sustaining the demand against the appellant barring a pure and simple dictated confession on part of Mr. Parikh, one of the non- working and part-time Director…. Knowing well that an amount has been already paid but as Commr. (A), an authority vested with the power to re-examine the evidence in appeal, I find it difficult to sustain the cause of action as confirmed at original stage…. I do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the evidence placed before him. However, an appeal proceeding cannot be treated as if a disciplinary proceedings against the investigating officers and the Adjudicating Authority. 5.3 There are certain strong and adverse findings against the Department and its officers, which are, prima facie, even beyond the allegations and submissions made by the appellants before him. Most of these observations are unsubstantiated as the order does not contain/disclose the grounds/reasons, if any, for such conclusions. As per investigation and as per the findings of the original authority, there was a shortage of huge volume of 450 M.T.s of scrap noticed in presence of panchas; in a statement given under Section 14 of the Central Excise Act, the directo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lusions, findings, observations without indicating the reasons for arriving at such conclusions. 5.5 If there were no materials to support the above findings and observations, then the order suffers from serious flaw. Such an approach of finding fault with other statutory authorities with out valid materials deserves to be discouraged. One can disagree and overrule without being nasty. 6.1 More importantly, the order lacks clarity on the core issue, namely, of duty demand. 6.2 In many places, the Commissioner (Appeals) laid stress on the fact that the duty involved have been paid promptly, and has expressed the view that no penalty is imposable. There are clear findings by him that penalty on the appellant firm and on the Director were n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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