9911796707
TMI Blog2016 (12) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... OL for short), are manufacturers of bulk drugs and drug intermediaries. They also have an associate company M/s. Coral Drugs (CDL for short) at IDA, Kukatpally, Hyderabad which is engaged in pelletisation of different drugs and is registered with the Central Excise Department. On intelligence gathered that both the companies are indulging in clandestine clearance of bulk drugs, the officers of DGCEI, Hyderabad conducted searches at the factories as well as related premises and recovered documents. On scrutiny of documents and statements recorded, it appeared that SSOL have clandestinely removed bulk drugs and drug intermediaries without proper accounting in the stock register by suppressing the actual production and without payment of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals) against setting aside of the demand of Rs. 11,95,213/- only. 3. On behalf of the Department, the learned AR Shri Arun Kumar explained the facts of the case and the evidences relied on by the Department. He confined his arguments mainly to the issue with regard to fraudulent availment of credit by the respondent company. He submitted that private records were seized from the factory premises which was maintained by one Shri G. Suresh who was then store incharge of the factory. That Shri G. Suresh had deposed in a statement dt. 14/11/2007 that in notebook maintained by him where it was noted only papers , it indicates that bills were received and no raw materials were received. That he noted the details of goods received in the said ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es placed before him and has arrived at a conclusion that the issue regarding confirmation of duty on the basis of clandestine removal of goods needs reconsideration by the lower authority. The matter with regard to this issue has been remanded by the Commissioner(Appeals) to the adjudicating authority for reconsideration. However the issue with regard to fraudulent availment of CENVAT credit has been set aside. The Department has filed appeal confining to this sole issue. In paragraphs 19 to 21, the Commissioner(Appeals) has dislcussed in detail the evidences available on the charge of fraudulent availment of CENVAT credit. 6. At the foremost, it has to be stated that on perusal of records, it is seen that there was rivalry between the Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has discussed the statement given by Shri G. Suresh which is relied upon by the Department to corroborate the private records recovered from the factory premises. It is noted that Shri G. Suresh is not a technical expert so as to depose that the quantities of chemicals which are required for production. Further that when there are several transactions on a particular day in the company, it is not believable that a person could recollect a few invoices and state that in these invoices, no goods were received into the factory. It is also noteworthy that though the statements of the dealers were recorded no further investigation was done in this line. The dealers have given one sided statement stating that they have given invoices only witho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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