2016 (12) TMI 1461

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....vt. Ltd., Raipur. The Director of the said Company admitted clandestine removal of goods and agreed to pay the Central Excise Duty. On 11.02.2014, summons were issued to Shri Dayalal Patel, Director of the appellant Company. On 12.02.2014, statement was recorded from him stating that the appellant has normal business transaction with M/s. Hanuman Ispat Pvt. Ltd., Raipur. Shri Dayalal Patel in his statement has also admitted receipt of 102.220 MT of M.S. Ingots from M/s. Hanumant Ingots Pvt. Ltd., Raipur, which were used for manufacture of 94.500 MT of M.S. Angles, clandestinely removed from the factory without payment of Central excise duty. On the basis of investigation, the Department issued the show cause notice on 27.05.2014, seeking co....

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....4. On the other hand, the ld. DR appearing for the respondent submits that since receipt of MS Ingots from M/s. Hanumant Ingots Pvt. Ltd., Raipur, use of the same for manufacture of clandestine removal of finished product was admitted by the Director of the Appellant Company, the charges of clandestine removal is proved and duty demand alongwith penalty confirmed in the impugned order is legal and proper. 5. Heard the ld. Counsel for both sides and perused the records. 6. It is admitted fact on record that the Director of the appellant Company in his statement recorded under summon has accepted receipt of MS Ingots from M/s. Hanumant Ingots Pvt. Ltd., Raipur and use of the same in the manufacture of re-rolled products, which were clandest....

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....red the said re-rolled products clandestinely without payment of CEX duty. I also voluntarily undertake to pay the CEX duty on 95.450 MTs of Re-rolled products viz. M.S. Angles (considering that the input output ratio to be 93.38% (as in the ER-6 Ruturn for the month of July 2013) manufactured out of the 102.220 MT of M.S. Ingots received from M/s. Hanumant Ingots Pvt. Ltd., Raipur. I calculate the CEX duty on the basis of our sales of M.S. Angle in the month of July, 2013 by taking the average value of M.S. Angle to be Rs. 30,636/- (as shown in the E.R.-I Return of July, 2013) which works out to Rs. 3,61,432/- (including Edn. Cess) and I undertake to pay the said amount of CEX duty alongwith interest and 25% of the duty amount as penalty t....