TMI Blog2017 (11) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... eal allowed - decided in favor of appellant. - E/52277 & 52278/2015-EX[SM] - A/71557-71558/2017-SM[BR] - Dated:- 15-11-2017 - Mr. Anil Choudhary, Member (Judicial) Shri Abishek Jaju (Advocate) for Appellant Shri Sandeep Kumar Singh (Dy. Commr.) AR for Respondent ORDER Per: Anil Choudhary The issue in these appeals is whether the Learned Commissioner have rightly upheld the confiscation of alleged excess stock, cash seized and rightly imposed penalty on the partner Shri Ashok Kumar Lahoty. 2. The brief facts as per show cause notice dated 30th September, 1997 are that M/s Virmani Steel Strips Ltd. (VSSL for short) situated at Surajpur, are engaged in manufacture of CR Strips. Based on the intelligence that VSSL, were evading payment of duty by resorting to suppression of production and clandestine removal of the CR Strips/Sheets, manufactured by them. The officers of DGAE on 3rd April, 1997 simultaneously search the factory premises, registered office of VSSL and the dealers associated with the business of VSSL including the present appellants. In the search and verification of stock in the premises of the present appellants resulted in seizure of 96 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s statement stated that they have two branches located at Delhi and Faridabad are registered with the Central Excise Department. They purchased CR Strips without any bill from local market from M/s Jain Sheet Traders, M/s Sudarshan Steel and M/s Laxmi Steel and procured documents from the manufacturers of CR Strips/Coil. He further stated that for the documents procured from the manufacturers, ₹ 150/- to ₹ 200/- per MT was paid as commission. Payments were made by cheque for the documents procured. After deducting their commission, balance amount was returned in cash, which was used for the payments in respect of local purchases made without bills. The documents procured from the manufacturers are entered in the RG-23D Register and the materials procured without bills were later sold to customers by issuing their own invoices. 5. It appeared to Revenue that VSSL was indulging in suppression of their actual production and removing their goods clandestinely and, it further appeared that the appellants MTC and its partner actively associated and dealt with sale, purchase and storage of CR Strips on which no duty appears to have been paid and rendered themselves liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also set aside and remanded to be considered afresh. Further it appears that Adjudicating Authority is under bias, when he passed the order against the appellants. He records in his operative portion of the impugned order, that he has confiscated 96MT of CR Strips. He should rule out his bias in fair examination of the case of the appellants because bias and Caprice are sworn enemies of Justice. 8. This is the second round of litigation. Pursuant to remand the present Order-in-Original have been passed by the Learned Commissioner, dated 12/03/2015 wherein after examining the submissions of the appellants particularly their plea that 96MT of CR Sheets were seized under the wrong belief that these CR Strips were received from VSSL. That VSSL was not manufacturing of CR sheets. Thus, the question of the said CR Sheets having been received from VSSL did not arise. Appellants also submitted that VSSL did not have the required facility to manufacture sheets. The Learned Commissioner observed that there is nothing on record to prove that VSSL did not have the required facility to manufacture CR Sheets and the unit is closed for about 20 years now. Hence this position cannot be verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Iron Sheet. The bill dated 28th October, 1995, a copy of the same with respect to bill of the Sardarilal Ashok Kumar, Delhi was not found submitted and the bill is for 6.732MT of CR coil. Further it was found that the description given in the bills is CR Sheet and neither the width nor the thickness of the sheets is mentioned therein. In absence of the two vital parameters the goods shown procured on the bills are not co-relatable with the seized goods and accordingly, the contention of the appellants was rejected. Further observed that on the day and time of search the two partners could not explain the reasons, nor they could produce the bills evidencing purchase of excess found stock. So the purchase bills were rejected also on the ground that they have been procured by way of afterthought to explain the excess stock. As regards the seized cash, the Learned Commissioner observed that this Tribunal has not remanded for de novo adjudication and accordingly, upheld the seizure of cash ₹ 2,30,000/-. The penalty of ₹ 50,000/- was also imposed on the partner - Ashok Kumar Lahoty. 10. Being aggrieved the appellants are before this Tribunal. The Learned Counsel for the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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