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TMI Blog2017 (11) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... se are that the department conducted search in the premises of M/s. AKS Alloys Pvt. Ltd. (herein after referred to as M/s. AKS) (Appellants in Appeal No. E/679/2009) and other places. Three numbering machines, blank pre-authenticated invoice books, blank delivery challan books as well as purchase records and other records and documents were recovered in the search operations. From the investigations, it appeared to the department that M/s. AKS were (i) Clandestinely clearing to various customers without payment of duty under invoices bearing identical serial numbers of the genuine invoices and without following any procedures under Central Excise, (ii) M/s. AKS are maintaining a parallel set of pre-authenticated invoices, meant to be us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 10 lakhs on Shri N.K.Kothari, Director of M/s. AKS under Rule 26 of the Rules. Aggrieved, the appellants have filed Appeal Nos. E/679 & 680/2015. Department has also preferred Appeals No. E/715 to 721/2015 against non-imposition of penalties on other co-noticees. 2. When the matter came up for hearing on 13.10.2012, on behalf of the appellant-assessee ld. counsel Shri S. Venkatachalam made oral and written submissions, which can be broadly summarized as follows:- 2.1 Statements given were not voluntarily made in this case and were obtained by the department by threat and coercion. 2.2 No incriminating documents were recovered from any premises and no other allegations is made in the show cause notice other than referring to 217 inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nished goods. Further, the appellant vide their letter dated 9.9.2009 stated in writing that they have agreed to the statements and accepted the documents recovered during the investigation. The appellant-assessee accepted the removal of goods as alleged in the notice without payment of duty. Their only contention was that they had no intention to evade payment of duty. A similar letter was given by Shri N.C. Kothari, Managing Director of appellant-factory as well as Shri N.K. Kothari, Director of the appellant-factory, Shri Rajesh Kumar Jha, Shri S. Murali etc. The appellants have therefore admitted the clandestine clearance of finished goods without payment of central excise duty. They have also paid the liability to the tune of Rs. One c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned dispute is not clear. However, we find from the records that the said 217 numbers of invoices was identified and recovered from the residence of Shri Shivachandra Kumar, who is an employee of the appellant-factory. In fact, the blank pre-authenticated invoice books of appellant factory (containing the similar pattern of display, printed name and style as that of accounted invoices) along with three numbering machines, for printing serial numbers on such invoice books was found and seized under mahazar dated 28.8.2009. The said Shivachandra Kumar was also engaged with regard to the pre-authenticated books and numbering machines and he admitted that one such machine is being used for printing the serial number on the pre-authenticated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chandra Kumar indicated both accounted scrap denoted as M and unaccounted scrap denoted as E . This finding has not been controverted by M/s. AKS. This being so, the contentions of the ld. counsel that there is no proof that unaccounted scrap was utilized will not succeed. Another critical aspect is that the Director Shri N.K. Kothari has admitted in his statement dated 2.9.2009 about the modus operandi followed by them. These admissions were corroborated and agreed to by the Managing Director Shri N.C. Kothari in his statement also dated 2.9.2009. Even after the show cause notice was issued on 8.9.2009, it emerges that M/s. AKS vide letter dated 9.9.2009 stated that they agreed to the statements except the documents recovered during invest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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