TMI Blog2016 (7) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... nal suspicion of wrongdoing is exalted to a final finding. It is such exercise which has been missed in the impugned order. It is for such reason that the decision-making process cannot stand the scrutiny in this extraordinary jurisdiction of overall superintendence. That does not mean that these petitioners are paragons of virtue. It is evident from the material obtained by the department from respectable organisations, including government companies and private sector undertakings, that the petitioners held themselves out of as manufacturers of the electrical and transmission goods that the petitioners sold to such purchasers. It was incumbent on the Commissioner to have otherwise come to a cogent finding that the petitioners could be regarded as manufacturers within the meaning of the said Act and found liable to pay the duty. That the petitioners may have misrepresented to their purchasers as to their status may not have been the only relevant consideration for the Commissioner. However, to the extent it is evident from even the submission of the petitioners as recorded in the order impugned that the petitioners may have represented themselves as manufacturers to thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e supplies. In addition, the petitioners emphasise on the internal report of the department and a report obtained from a private expert to the effect that the petitioners perceived manufacturing facility at Bellilious Road, Howrah may not be in operation at all. The petitioners also refer to the sweeping statements in course of the findings rendered in the order impugned without reference to the evidence on record. The petitioners seek to demonstrate that the major findings are contrary to the evidence and without any discussion on the evidence at all. Several show-cause notices were issued to the petitioners for the petitioners being perceived to have evaded excise duty for the period February, 2011 to March, 2013 and, thereafter, for the subsequent periods upto the end of financial year 2014-15. The principal allegations and the reasons in support thereof were provided in the show-cause notice pertaining to the period February, 2011 to March, 2013 and the subsequent show-cause notices relied on the parent show-cause notice. In the mother show-cause notice pertaining to the period February, 2011 to March, 2013, four suppliers of the petitioners were picked out for special m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the premises to make an inventory of the manufacturing facility or the raw materials or the finished products thereat, some old and rusted raw materials were discovered and some machines were found but such machines did not convey any impression of being in constant or, at least, recent use. The petitioners also relied on a report from a chartered engineer prepared sometime in 2014, according to the department. The report refers to the 1080 sq. ft premises which was found to be poorly lit and without any power back-up facility. The machines were found covered with dust, filth and cobwebs and it appears that the machines have not been used for a long period. There was no water connection or such arrangement found at the premises and the Landis machine was found to be partly lying uninstalled in its outer shell without its integral component. There was no chimney found for the furnace at the facility to be used or operated. It may not have been necessary to notice either the department s inventory report or the private chartered engineer s report in any great detail had it not been for some of the seemingly broad statements made in course of the findings rendered in the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers, notwithstanding the value thereof not being of any significant proportion. The Commissioner has accused the petitioners of not producing any records or documents evidencing that the raw material or semi-finished goods were sent for job-work. If only to take an example, paragraph 11.13 of the order impugned may be referred to in such context as the failure to produce the evidence in such regard is recorded therein. It is apparent from the petitioners reply to the show-cause notice (specifically, Volume VI, page 664-665 of the present papers) that the petitioners furnished the particulars, not once but twice. Yet again, the Commissioner failed to take into account such evidence as produced or relied upon by the petitioners. It is possible that the evidence may have been utter rubbish, but the Commissioner was obliged to discard or discredit the evidence before proceeding to indict the petitioners. In the Commissioner s failure to appreciate that such evidence existed, as would appear from the recording at paragraph 11.13 of the order impugned, such order appears to be contrary to the records and, as such, amenable to a challenge on the grounds of breach of natural justice an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the petitioners depositing a sum of ₹ 50 lakh with the department within four weeks from date. The order dated December 22, 2015 will remain unconditionally stayed for a period of four weeks from date and, thereafter, stand set aside upon the deposit being made within such time. If the deposit is not made within the time permitted, the stay shall vacate automatically and without further reference to Court and the order dated December 22, 2015 will stand upheld. Upon the deposit being made, which will be without prejudice to the rights of the petitioners in the pending hearing, the concerned Commissioner is requested to decide the matter afresh by passing a reasoned order within a period of eight weeks after affording the petitioners a hearing. If the petitioners succeed in the show-cause notices or the claim of excise duty being set aside after the exercise is completed by the concerned Commissioner, the deposit made pursuant to this order will be refunded without any interest within a fortnight of the Commissioner s order being made. If there is any excise claim at the end of the exercise completed by the concerned Commissioner, the deposit will get adjusted against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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