TMI Blog2016 (12) TMI 918X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner, Jaipur s order dated 19/03/2008 where demand of ₹ 52,96,870/- alongwith interest and penalty of ₹ 53,14,370/- has been confirmed. A penalty of ₹ 5,00,000/- (Rupees Five Lakhs only) has also been imposed on the appellant Shri Rajendra (Prasad) Goyal, Director. 2. Appellants have been represented by Shri Bipin Garg, learned Advocate and the Revenue has been represented by Shri R.K. Manjhi, learned AR. 3. The matter concerns with clearance of cement without payment of duty . 4. The learned Advocate based on the appeal memorandum inter-alia mainly submits as under :- (i) Commissioner tries to build up the case for the Department by referring to the statement dated 19/11/1999 of Shri Rajendra Goyal, Director. Commissioner mentions that Shri Goyal admitted recovery of incriminating documents and also admitting that he maintained parallel set of invoices deliberately with an intent to evade payment of Central Excise duty and using parallel invoices for clearance of cement without payment of duty (ii) But the fact remains that these registers are consolidated account of the 4 units including the appellants factory. This account was a sort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts on 09/10/97 but after that the factory was worked with Diesel Generator, which was installed in the factory from the very beginning. It is not understood how the statement of Shri Meghwal was recorded by the excise officers because it is totally against the facts. (iv) In the order-in-original there was mention of/written Do number ki hai , thus trying to get support for his observation that the resumed invoices books were parallel invoices of M/s Durga Cement being used for clearances by the appellants M/s Chanra Cement without payment of duty. The fact is that the reported legend was written on blank invoice book by the Nepali chowkidar at the factory gate when the same was brought to the factory for use. He was supposed to write that the books pertained to Doosre Plant Ki Kitab Hai whereas he wrote what is now alleged to be foolproof evidence for allegation of evasion of duty. 5. Learned AR for the Revenue has reiterated the findings given by the lower authority. 6. We have carefully considered the facts of the case and the submissions of both the sides. 7. The appellant in his grounds of appeal at page 12 mentions the contents of Annexure A to the show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidences to sustain the charge of clandestine removal, there is no need to further extend the enquiries/investigations to all the customers or transporters in case of the goods namely cement removed clandestinely by the appellants. (iii) Weighment slips resumed : Appellants argue that their factory namely M/s Durga Cement was in operation, and the Department s allegation that it was closed , is baseless. The appellants argue that the operation of M/s Durga Cement can be confirmed from sales tax assessment for the period 1997-1998, 1998-1999. This argument of the appellants cannot take them very far when the Department during the visit found the factory completely closed and non-functional; founding electricity connection disconnected; did not find any DG set; the machines of the unit were found rusty; there was no manufacturing activity going on; there were no raw material and no finished goods. Against the above findings of the Department, the argument of the appellants that they have confirmed sales tax assessment for two years i.e. 1997-1998, 1998-1999 does not have substance to negate the charge that their factory under the name of M/s Durga Cement (P) Ltd. was non-operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., Narnaul. Instead of sending the above clinker to Narnaul, the clinker in fact was being received by M/s Chandra Cement Ltd., Kotputli, which ultimately was being used by them for the manufacture of O.P. Cement. The cement so manufactured was cleared by issuing the invoice of M/s Durga Cement (P) Ltd., Narnaul from the factory at Paniyala at NIL rate duty under SSI exemption notification. In this way, I find that the assessee had deliberately attempted in making fake entries in the statutory records of M/s Durga Cement (P) Ltd., Narnaul for receipt of clinker and showing production of O.P. Cement in the records of M/s Durga Cement (P) Ltd. Narnaul despite the fact that the unit was lying closed since long. Moreover, their electricity connection was disconnected by DHBVNI on 09/10/97. This fact was also strengthened from the statement tendered under Section 14 of the Central Excise Act, 1944 by Shri Balbir Meghwal, Chowkidar available at the time of visit, by the Anti Evasion Officers on 30/11/99 wherein he categorically disclosed that the factory is closed since long. .. 43. On appreciation of the evidence, I observe that the only defence that has been put forth by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
