TMI Blog2017 (3) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-SM, Central Excise Appeal No.263 of 2006-SM - Final Order No.A/10627-10630/2017 - Dated:- 6-3-2017 - Dr. D.M. Misra, Member (Judicial) Shri Paritosh Gupta, Advocate for the appellants/assessee Shri Sameer Chitkara, A.R. for the Revenue ORDER Per Dr. D.M. Misra Out of the four appeals, three appeals are filed by respective parties and one appeal is filed by the Revenue challenging the same Order-in-Appeal dated 30.8.2006 passed by the ld. Commissioner (Appeals), Central Excise, Ahmedabad II. 2. Briefly stated the facts of the case are that the Central Excise Officers had intercepted a vehicle loaded with 500 kgs. of Saviton WS manufactured and cleared from the factory premises of M/s Kemit Chemicals Pvt. Ltd.. Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, confirmed the demand against the appellant M/s Kemit Chemicals Pvt. Limited, with interest but reduced penalty to ₹ 15.00 lakhs on the company, also reduced and personal penalty on Shri Yogesh Kantilal Desai to ₹ 25,000/- . Hence, the present appeals. 3. Revenue has filed the appeal challenging reduction in penalty imposed under Section 11AC of CEA, 1944 on the appellant company M/s Kemit Chemicals Pvt. Limited and personal penalty on Director Shri Yogesh Kantilal Desai. 4. Ld. Advocate for the appellants/assessees submits that on completion of investigation, based on statements of various persons and the entries recorded in the registers at serial Nos.2, 13 and 20 of annexure to the Panchnama, it has been alleged that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the ld. Commissioner (Appeals), it was erroneously rejected observing that after the raid and search, buyers, dealers and suppliers could have been alerted by the evaders. Further, the statements were rejected on the ground that these were recorded after a lapse of 2 to 3 months from the date of raid. It is his contention that the said observation is contrary to the facts, inasmuch as the statement of Shri Bansal was recorded on 17.1.2000 i.e. within fortnight from the search and seizure. The statements of concerned persons of M/s Spectrum Dyes and Chemicals Pvt. Limited and M/s Nova Dye-Stuff shown as purchasers had been recorded is a fact and admitted during the course of cross-examination by the officers, but copies of the said sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner (Appeals). He has submitted that there is categorical admission by the Directors and Authorised Signatory after seeing the work sheet/annexure showing details of evasions. The said statements have never been never retracted. Once there is an admission of clandestine removal, further secondary evidences become irrelevant. 7. Heard both sides and perused the record. I find that the allegations made against the appellants/assessees is that during the period 1997-98, 1998-99 and 1999-2000 they had manufactured and cleared 5,06,762 kgs. of dyes intermediates clandestinely without payment of total central excise duty of ₹ 28,68,857/-. The said allegation is based on the records retrieved from the premises of the appellant M/s Kemi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em through their reply to the show cause notice, ought to have been addressed by the adjudicating authority, recording finding on each and every aspect of the reconciliation statement submitted by the appellant. Also, it is settled principle of law that the evidences collected during the course of investigation whether in favour of the Revenue or otherwise ought to have been made available to the assessees and the appellant is free to make such use of such evidence in support of their case. Therefore, it is prudent to remand the matter to the adjudicating authority to decide the issue afresh taking into consideration the evidence on record including the statements of all the buyers i.e. M/s Spectrum Dyes and Chemicals Pvt. Limited and M/s N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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