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TMI Blog2017 (9) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the said goods are melting scrap and M.S. Ingots. There was a search operation in the factory of the appellant company by the D.G.C.E.I. Officials on 08.02.2005. Simultaneous search was also conducted in the various premises of the suppliers of CTD/M.S. Bars and also in the premises of the transporters. On the basis of investigation conducted by the DGCEI Officials, the Department issued the show cause notice dated 06.02.2009, seeking recovery of the Central Excise duty and for imposition of penalties. The following allegations were made in the show cause notice:- a) The appellant company had received un-accounted for raw-materials (ingots) from the parties namely, Kanika Strips Pvt. Ltd., Durga Enterprises, Shiva Steels, Sandeep Enterprise and A.S. Industrial Enterprise and used the same for manufacture of M.S. bars, which were clandestinely removed from the factory, without payment of Central Excise Duty. b) During the period 01.01.2004 to 31.03.2005, the appellant company had procured invoices of C.T.D. / M.S. Bars from the above named parties located in Faridabad, who had shown sale of the quantity of 4022.91 M.T., without actual sale of goods. c) The parties namely, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It has been held that there was no reason for anyone to scribble entries in the said GRs hypothetically and keep in the premises. (iii) With regard to purchase of M.S. Bars from various dealers, he has held that the transactions were undertaken on paper, as only invoices were supplied without goods by these dealers. He relied upon the statements of various suppliers to uphold the allegations. (iv) During the course of search of the factory premises of appellant company on 08.02.2005, a miscellaneous loose paper file was found, which contained Toll Plaza receipt of HSRDC Ltd. and weighment slips issued by different Dharam Kanta. Scrutiny of the documents including invoices issued by Khori branch and comparison with genuine invoices issued by appellant from Bhiwadi unit revealed that the truck numbers 3065, 0885, 3769 and 1563 were used to show clearances from Khori Depot. However, vehicle numbers were also available in the documents resumed from factory premises. (v) It was evident that the appellants were involved in procurement of un-accounted for M.S. ingots from Faridabad through Shree Ganesh Roadways, which were used for manufacture of M.S. Bars cleared clandestinely. 3. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nied by ST-38 Form and Form VAT D-3, which are the road permits for internal movement of goods within the state of Haryana. The ld. Advocate also stated that the statement recorded from the dealers were contradictory/not corroborative. To support such stand, he referred to the statement recorded from Shri Sandeep Sharma, the supplier of goods, who stated that the cash was returned to one Shri Shyamji; but the said person was never traced and further the Department had never conducted any enquiry to find out the existence of such witness. One more example was placed by the ld. Advocate on the basis of available records to show that the Department has not properly enquired into the matter inasmuch as, only documents seized from the dealers showing payment of commission amount of 1.1% was relied upon, but no substantiation was made to find out whether such amount is towards actual supply of goods or for arranging only the invoices. Thus, the ld. Advocate submitted that the adjudged demand was confirmed on the basis of untested/ uncorroborated evidence, which is not proper and justified. 4. On the other hand, the ld. D.R. appearing for the respondent reiterated the findings recorded i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the appellant for confirmation of the adjudged demand. We find that this Tribunal in the case of Banco Aluminium Ltd. (supra) while setting aside the adjudication order has held that the Department had no desire to comply the remand direction of the Tribunal. The said decision of the Tribunal has been affirmed by the Hon'ble Gujarat High Court, reported 2007 (218) ELT 184 (Guj.) and SLP of Revenue has also been dismissed by the Hon'ble Supreme Court, as reported in 2008 (222) ELT A133 (S.C.). 8. Apart from the above legal position with reference to reliance placed on statements by the Original Authority, we have also examined the factual position regarding corroborative evidences that are sought to be relied upon by the Revenue to confirm the demand. We note that the appellants have rebutted with detailed submissions each one of the evidence sought to be relied upon by the Revenue. Following are some of the main points in this regard :- (a) regarding loose sheet with 4 truck numbers, we find that the said consignments were duly reflected in the books of accounts maintained at Kohri depot of the appellant. The explanation given by Shri Khemchand Swami in his statement dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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