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In Re : Maa Chhinnamastika Cement & Ispat P. Ltd.

2015 (4) TMI 1113 - SETTLEMENT COMMISSION, CUSTOMS AND CENTRAL EXCISE, KOLKATA

Application for settlement - evasion of duty - Held that:- In the instant case, a SCN F. No. 65/KZU/KOU/Gr.A/13/5430-31, dated 23-7-2014 was issued demanding duty amounting to ₹ 18,53,489/- (including duty of ₹ 17,99,504/-, Education Cess of ₹ 35,990/- and Secondary and Higher Education Cess of ₹ 17,995/-) on a shortage of 882,110 M.T. of Sponge Iron. The evasion of duty on this quantity of 882.110 M.T. has been admitted by the applicant and also by the co-applicant, Shri .....

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the Directors of the company and is overall in-charge of the company including production, clearance and finance including direct and indirect taxation. He has also admitted removal of 882.110 M.T. of Sponge Iron without abiding by the Central Excise formalities and also admitted that even the raw material for manufacture of the unaccounted finished goods cleared from their factory without issuing any Central Excise invoices, was also not entered in their books of Account. Thus, there is no doub .....

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nt Shri Ram Chandra Rungta and grants immunity from penalty in excess of these amounts. The amounts of penalty should be paid within 30 days from the date of receipt of this order.

Prosecution - Subject to the payment of the aforesaid amounts, the Bench grants immunity to the applicants from prosecution under the Act and Rules made thereunder in so far as this case is concerned.All the above payments and appropriation should be completed within 30 days from the date of receipt of this .....

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Shri Mohan Singh Dorai, K.B. Lal, Assistant Commissioners, Shivaji Chakraborty and Tapan Bose, Superintendents, for the Department. ORDER This order disposes of two Settlement Applications No. 1045 & 1046/2014 filed by M/s. Maa Chhinnamastika Cement & Ispat Pvt. Ltd. having their factory at Hehal, Barkakana, Dist. - Ramgarh, Hazaribagh, Jharkhand - 829 103 (hereinafter referred to as the applicant ) and Shri Ram Chandra Rungta, Director, M/s. Maa Chhinnamastika Cement & Ispat Pvt. Lt .....

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ioner of Central Excise & Service Tax, Ranchi Commissionerate, Ranchi. 2. Briefly, the facts of the case as per the SCN are that the applicant is the manufacturer of Sponge Iron falling under Chapter 72 of the 1st Schedule to the Central Excise Tariff Act, 1985 and holds Central Excise Registration No. AADCM9547QXM001; that on 14-3-2013, the officers of DGCEI, based on the intelligence that the applicant is evading Central Excise duty by wilful suppression of their production and remova .....

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Cess of ₹ 35,990/- and Secondary & Higher Education Cess of ₹ 17,995/-) by the co-applicant in his statement dated 16-4-2013. 3. The co-applicant, in his statement dated 16-4-2013 inter alia accepted the above shortage and admitted that the shortage had occurred due to removal of the finished goods without issuing Central Excise invoices and without payment of Central Excise duty and without recording such removals in their statutory Daily Stock Account (DSA) register. He al .....

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evenue Building, 5, Main Road, Ranchi-834 001 under Ranchi Commissionerate as to why : (i) Central Excise duty amounting to ₹ 18,53,489/- (including E. Cess ₹ 35,990/- and S&HE Cess ₹ 17,995/-) should not be demanded and recovered in terms of proviso to Section 11A(4) of the Act, (ii) Interest at appropriate rate under Section 11AA of the Act should not be recovered from them, (iii) Penalty under Section 11AC of the Act read with Rule 25 of the Central Excise Rules, 2002 sh .....

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he duty liability of ₹ 18,53,489/- towards duty (including E. Cess ₹ 35,990/- and S&HE Cess ₹ 17,995/-) on the entire quantity of excisable goods alleged to have been removed without payment of duty. They also submitted that they have co-operated with the department and have paid the entire duty demanded in the same month in which the shortage was detected by DGCEI officials; that since they have deposited the entire duty demanded in the same month, there is no question of .....

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be settled granting immunities from penalty and prosecution under the Act as they had already paid the admitted duty. 6. Notice under Section 32F(1) was issued on 31-10-2014 and on perusal of the reply dated 7-11-2014 by the applicants, the cases were allowed to be proceeded with. 7. Report under Section 32F(3) was called for on 14-11-2014 from the Commissioner of Central Excise & Service Tax, Ranchi Commissionerate, Central Revenue Building, 5A, Main Road, Ranchi - 834001 and DGC .....

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8.2 In his report dated 15/16-1-2015 under Section 32F(3) of the Act the Additional Commissioner of Central Excise & Service Tax, Ranchi - I, vide letter F. No. V(72) 83/Maa Chinnamastika/Adjn/RAN/2014, dated 15-1-2015 inter alia submitted that the applicant has admitted their entire duty liability and there is no interest liability in this case. The payment of ₹ 20,00,000/- made by the applicant was also confirmed by the Range Superintendent. 9. The matter was heard on 25-2- .....

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by Shri Mohan Singh Dorai, Assistant Commissioner, Central Excise & Service Tax Commissionerate, Ranchi, along with S/Shri Shivaji Chakraborty and Tapan Bose, Superintendents from Dte. General of Central Excise Intelligence, Kolkata Zonal Unit, informed the Bench that since they have no information and could not collect any evidence showing removal of the goods without payment of duty, they are unable to offer any comments on the date of removal and to work out the exact amount of interest. .....

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ta Zonal Unit, reiterated their earlier stand that they could not get any evidence about the actual date of removal of the goods. Shri Shivaji Chakraborty, Superintendent, DGCEI, KZU, also submitted a copy of Joint Stock-taking Report dated 14-3-2013 which was enclosed with the SCN as Annexure-A2. 10. In the instant case, a SCN F. No. 65/KZU/KOU/Gr.A/13/5430-31, dated 23-7-2014 was issued demanding duty amounting to ₹ 18,53,489/- (including duty of ₹ 17,99,504/-, Education Cess .....

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gaged in unaccounted manufacture and clandestine removal of finished goods without payment of Central Excise duties in a planned manner. The co-applicant, Shri Ram Chandra Rungta, in his statement dated 16-4-2013 has also admitted that he is one of the Directors of the company and is overall in-charge of the company including production, clearance and finance including direct and indirect taxation. He has also admitted removal of 882.110 M.T. of Sponge Iron without abiding by the Central Excise .....

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ng the interest, Bench finds that in view of the submissions made by the applicants that the entire quantity of 882.110 M.T. of Sponge Iron was removed clandestinely in the month of March, 2013, itself before the search was conducted by the Officers of DGCEI, KZU, and no evidence having been produced to the contrary, the Bench finds that interest is not payable under the provisions invoked in the SCN. 12. Taking into account the above and the facts and circumstances of the case, the Bench s .....

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