TMI Blog2016 (8) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... the financial fraud is admitted fact, other than this, the role of appellant in excise duty evasion is not explained in the impugned order. When companies are dummy and transactions are only book entries the penalty under excise rules cannot be justified. any. Similarly for second appellant (Kedia Castle Dellon Industries) also , the allegation of their involvement in any excise duty evasion has not been explained with evidence in the impugned order. As discussed earlier, we are dealing with mainly non-exiting machinery, created by book entries as part of financial fraud and some manufacture done by contractors. The role of appellant in the excise duty evasion has to be indicated and evidenced independently. Therefore, in the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms and obtained hire purchase finance from various finance companies fraudulently. Various machinery were shown received in their ledger book, shown as captively used for commissioning and installation. On physical verification most of these accounted machinery etc. were not found in the premises of the factory. The learned Commissioner confirmed the demand only on the ground that huge quantity of machinery, structurals etc. were shown accounted for in the books which were not available with M/s.Kedia Distilleries. 3. While considering these two appeals, we noticed that the parties in appeal are contesting imposition of penalty. It is noticed that Tribunal vide Miscellaneous Order No.782/2006-Ex dated 14.9.2006 observed that both these a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalties under Rule 209A are not imposable on the appellants as there is no case of duty evasion and there is no penal liability on the appellants. 7. Leaned AR reiterated the findings in the impugned order. 8. We find that the admitted facts of the case indicate a financial fraud by the main party with the association of various other persons. The scheme devised is to obtain finance from financing companies by creating dummy firms, showing purchase of large quantities of machinery and other materials through book entries only. Further, whatever machinery fabricated inside the factory premises are done by job workers. As such the persons engaged in manufacturing activity/contractors are liable to central excise duty, if any. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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