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TMI Blog2017 (7) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... f the CETA. The officers of the Central Excise conducted searches at the factory of M/s G.P. Textiles, trader M/s SRS Synthetics and M/s Harsha Traders, Transporter M/s Somnath Transport, M/s Yadav Transport, M/s Ambika Transport and jobworker M/s Weave Tex Textiles, M/s Gaurishankar Textiles amongst others. M/s G.P. Textiles were purchasing duty paid dyed Texturised yarn and sending for jobwork to jobworker namely M/s Weave Tex Synthetics and M/s Gaurishankar Textiles for conversion into fabrics by weaving. The officers during the visit of M/s G.P. Textiles, seized notebook maintained by the Security Personal Shri Indresh Shukla who in his statement stated that the details mentioned therein pertains to quantity of incoming raw material and outgoing finished goods in bundles/rolls. That on the instruction of Production Supervisor Shri Hemant Shah and owner Shri Arun Poddar he used to destroy the pages at the end of the day or after sometime. The notebook maintained for the period 22.11.2001 to 7.12.2001 was further cross verified and it was found that most of the clearances were made without duty paying documents. On physical verification a shortage of 6677 Mtrs of PVC Sheet value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s G.P. textiles and the rent was paid through the account of M/s SRS Synthetics; that the salary of person employed at M/s SRS Synthetics is paid by M/s G.P. Textiles; all transactions of bank account is handled by Shri Arun Poddar and he merely signs the cheques as desired by Shri Arun Poddar ; that whenever M/s G.P textiles supplied laminated fabrics to SRS Synthetics on invoice, the payment for the same was made by cheque and whenever the goods were supplied without invoice the payment was made by self bearer cheque on which he put his dated signature; that he does not know what Shri Arun Poddar does of the cheque; he confessed that the file containing chits marked 1 to 363 at serial no.2 to Annexure - 'A' to panchnama dt. 08.12.2001 withdrawn from premises of M/s SRS Synthetics contains the details of laminated fabric supplied by M/s G.P. Textiles for which no central excise duty has been paid nor any invoice raised; he deciphered the coded details on the chits e.g for chit no.363 mentioned Y-A/AO for 8 rolls/ bundles of laminated fabric means that Y stands for Yadav Transport, A/AO stands for clearance affected on 1st October total 8 rolls/ bundles of laminated fabrics w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on 08.12.2001 which were later withdrawn vide panchnama dt. 08.12.2001 were cleared without accounting for in statutory records, without preparation of invoice and without payment of central excise duty; he confessed that the file containing details of 1 to 363 recovered from M/s SRS Synthetics was towards clearances of goods form M/s SRS Synethtics without payment of duty. He also confessed that Shri Hemant Shah merely signed bearer or crossed cheque of SRS Synthetics and afterwards due to M/s G.P. Textile was withdrawn. That some of the consignments were sent in the name of R.P Synthetics. He agreed to pay duty of Rs. 20,86,477/- leviable on laminated fabric cleared for the period 01.10.2001 to 26.11.2001 on clearances made by M/s G.P Textiles. During investigation from Transporter Shri Rakesh Barbrekar employee of M/s Yadav Transport Agency in his statement dt. 02.01.2002 stated that they have transported bundles of laminated fabrics from M/s G.P. Textiles and the details of same are in transport memo seized by the department. That the goods were sometimes sent on invoices and sometimes on challans and the deliveries were collected by the parties. During visit to the Ambika t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2,89,343/- (AED). Similarly during 2001 - 02 M/s G.P. Textiles has received 138313.30 l. mtrs of fabric from M/s Weave Tex which was used for manufacture of same quantity of laminated fabric valued at Rs. 45,64,342/- involving duty of Rs. 7,30,295/- (BED) and Rs. 2,28,217/- (AED) which was not accounted for in the books and was clandestinely cleared without payment of duty. Shri Arun Poddar the proprietor of M/s G.P Textiles accepted the authenticity of such transactions and receipt of fabrics from M/s Weave Tex. Search was also conducted at M/s Gaurishankar Textiles and records were withdrawn. Statement of Shri Harshad Mohan Bhai Machhi, Supervisor was recorded who stated that they have been doing jobwork of M/s G.P Textiles since Jan' 2001; that for the period from Jan' 2001 to Jul' 2001, M/s G.P textiles were sending yarn for conversion to fabrics under Annexure - II challan but the same were taken back by M/s G.P Textiles after receipt of yarn; that they converted yarn into grey fabrics and delivered under their own delivery challans ; the records containing details of fabrics supplied to M/s G.P Textiles for the period since April' 2001 has been withdrawn by the department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (AED) is based upon the premise that M/s G.P Textiles during the period Sep' 2001 to Dec' 2001 by not accounting the finished excisable goods i.e impregnated coated and laminated fabrics has removed the same to dummy trading firm M/s SRS Synthetics without payment of duty through various transporters. (ii) demand of Rs. 7,26,681/- BED and of Rs. 2,27,088/- AED against M/s G.P Textiles is based upon premise that M/s Gaurishankar Textiles manufactured fabric on jobwork basis for M/s G.P. Textiles and the same was used for manufacture of 137629 l mtrs. of laminated fabrics valued at Rs. 45,41,757/- by M/s G.P Textiles which was clandestinely removed. (iii) A demand of Rs. 16,56,194/- (BED) and of Rs. 5,17,560/- against M/s G.P Textiles is based upon premise that during the period 2000-2001 M/s G.P Textiles has received from M/s Weave Tex Syntehtics the jobworker 175359.7 l. mtrs of fabrics which was utilized for manufacture of similar quantity of laminated fabric valued at Rs. 57,86,867/- attracting duty of Rs. 9,25,899/- (BED) and of Rs. 2,89,343/- (AED). That similarly during 2001 - 02 M/s G.P Textiles has received 138313.30 l mtrs. of fabrics which was used for manufacture of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the mistake in verification report obtained by the adjudicating authority and submits that since then report has been sought without giving them chance to explain, hence the same is incorrect. I find that the demand in the present case has been made upon the note book seized from the security person Shri Shukla and chits seized from M/s SRS Synthetics. The facts of clearance of goods from M/s G.P Textiles to M/s SRS Synthetics are absolutely apparent. Even during the visit of the officers to the premises of M/s SRS Synthetics the consignment of laminated fabrics cleared clandestinely by M/s G. P Textiles was received by M/s SRS Synthetic. Also the same is corroborated by the transport memos and records as well as statements of transporters. The identity of SRS Synthetics as dummy concern floated by Shri Arun Poddar, Proprietor of M/s G.P textiles has been accepted by Shri Arun Poddar and their employee Shri Hemant Shah who was shown as proprietor of M/s SRS Synthetics. In such facts of the case that when the goods were received at M/s SRS Synthetics from M/s G.P. Textile on the basis of chits coupled with the fact that though one invoice was prepared by M/s G. P textiles but the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly stated that the goods were received from M/s G.P textiles from January to July' 2001 under Annexure - II challans. The Appellant submits that no delivery challan of M/s Gaurishankar has been brought on record to show that the goods were delivered to Appellant. He submits that all the Annexures for jobwork were found after the period of September' 2001. That there is no iota of evidence of receipt of any raw material by Appellant without payment of duty, production of coated and laminated fabric and clearances thereof during the period Jan to July' 2001 and hence no demand can be raised. He submits that the demand has been confirmed on ground that the dispatch details in respect of clandestine clearance of finished goods and also details of receipt of raw materials recorded in note book were destroyed and thus the evidence of clandestinely cleared finished goods and the raw material used in the finished goods would not be available. That from the statement of security person Shri Indresh Shukla dt. 08.12.2001 it can be seen that he was employed since last two months whereas the demand pertains to the period prior to September' 2001. Thus there was no question of maintenance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of M/s Weave Tex Synthetics in his statement dt. 13.12.2001 stated that they have been receiving dyed yarn for jobwork and that subsequent to September' 2001 on four occasions the dyed yarn was received without any challan. He also submitted file containing details of cash transactions with M/s G.P. Textiles. He also stated that for jobwork, payment is made by M/s G.P. Textiles through crossed cheques drawn on Bombay Mercantile Co- operative Bank and sometimes by cash. Shri Arun Poddar in his statement has also accepted the fact that the documents seized from the premises of M/s Weave Tex pertains to cash payment made to M/s Weave Tex on account of jobwork during the period 2000 - 2001 and 2001 - 2002. The Appellant's submission is that there is no evidence that the cash receipts were towards illicit removals by M/s Weave Tex and that there is no evidence that the fabric was used by them in the manufacture of their finished goods. They have also submitted that some of the amount in cash does not pertain to them as the same was received by M/s Weave Tex from some other party i.e Shyam Silk Mills. I am of the view that the Appellant has nowhere stated about disposal of fabrics rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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