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Santosh Kumar Kishan Lal Jain, Shri Santosh Kumar Jain And Shri Lalit Kumar Jain Versus Commissioner of Central Excise

2016 (7) TMI 299 - CESTAT NEW DELHI

Clandestine removal of goods - extended period of limitation - the appellants have submitted that there is not much evidence on record to reflect upon the clandestine activity. It is seen that they are not disputing the fact of receipt of tobacco as also the fact of receipt of huge number of packing material. - Held that:- Revenue have procured evidence of receipt of unaccounted tobacco, receipt of packing material as also sale of final product to the assessees dealers. The appellants have not .....

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n clandestine manufacture and clearance of their final product, though they were reflecting nil production in their RT 12 returns. - Demand confirmed - Matter remanded for computation of duty liability - Decided against the assessee. - Excise Appeal No. 428, 429 & 430/2008 - Final Order No . 52204-52206 /2016 - Dated:- 28-6-2016 - MS ARCHANA WADHWA, MEMBER (JUDICIAL) AND MR. B RAVICHANDRAN, MEMBER (TECHNICAL) None for the Appellants Shri G R Singh, AR for the Respondent ORDER Per Archana Wadhwa: .....

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ules. 2. As the appellants had made a request to decide the appeals on the basis of records available and their memo of appeal , we have heard the learned DR and have gone through the impugned order. 3. As per the facts on record, the appellant M/s. Santosh Kumar Kishanlal Jain is the proprietary firm of Shri Santosh Kumar Jain and engaged in the manufacture of unmanufactured tobacco under the brand name of Lalit Chaap Tej Tambakhu classifiable under Chapter 24 of Central Excise Act. They are al .....

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of raw materials as also of the finished goods. The goods were seized under a panchnama dated 20.11.1999 and statement of various persons were recorded. It was found that there was780 Kgs of final product lying in their factory which was seized by the officers on the reasonable belief that same was meant for clandestine removal. After recording the statement of various persons, proceedings were initiated against the appellant by way of issuance of show cause notice dated 29.6.2001 relatable to .....

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of Lalit Chhap Tej Tambakhu which were purchased from M/s.Guru Print, Pack Industries, Jabalpur. Statement of various dealers were also recorded wherein they admitted having received the final product from the appellant during the said period. The final product was also found at the dealers premises and seized. 5. Based upon the above proceedings were initiated against the appellant by ways of show cause notice dated 20.6.11 alleging clandestine removal and proposing to confirm duty of ₹ 3 .....

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ut of said quantity, the quantity of 6949 Kgs. of tobacco was purchased by Shri Lalit Kumar Jain who was having his own trading activity, it is only the balance quantity of loose tobacco which has to be held as having been used for the manufacture of illicitly removed final product. Similarly, in respect of packing material, he observed that entire 3,20,000 packing material was used in a particular manner and Revenue cannot demand duty by treating the entire packing material as that of packing o .....

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covers from M/s. Guru Print Pack Ind, Jabalpur. Out of these 3,20,000 packing material, 2,00,000 were empty printed pouch for packing of 3 gms tobacco; 1,00,000 empty packing pouhes were for packing of 6 gms tobacco pouch and 20,000 outer covers were meant to pack these pouches kept to given them puda shape for the marketing of the finished goods. 45.6. As per the evidence available on records out of these packing material the noticee could have manufacture 10,000 pudas of 3 gms tobacco pouch a .....

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rough the grounds of appeal, we find that the appellant is mainly assailing the impugned order on the ground of the demand being barred by limitation. The appellants contention is that inasmuch as the first show cause notice was issued based upon the panchnama dated 28.11.99 prepared by the visiting officer, the entire facts came to the Revenues knowledge on 20.11.99 and issuance of show cause notice on 29.06.2001 is barred by limitation. 8. The said plea of the appellant stand dealt with by th .....

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lier of packing material and the recipient of their final product i.e. their dealers. Inasmuch as the allegations against the appellant are relatable to allegations of clandestine activities, the assessee s stand that notice issued on 29.6.2001 is barred by limitation cannot be accepted. 9. Further, the appellants have submitted that there is not much evidence on record to reflect upon the clandestine activity. It is seen that they are not disputing the fact of receipt of tobacco as also the fac .....

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vidence. On the contrary, they have accepted the receipt of said material. Infact, we find that the order passed by the original adjudicating authority is very justifiable order as it also extends benefit to the assessee in respect of tobacco traded by them as also takes into account the correct formula for use of the packing material. In such a scenario, it can be justifiably held that appellant during the relevant period were indulging in clandestine manufacture and clearance of their final pr .....

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