TMI Blog2017 (12) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... cative of lack of application of mind. If the appellate authority was of the view that the defence of the appellant placed before him had not been made available to the lower authority, principles of natural justice requires that such evidence that are intended to counter the allegations leveled in the show cause notice should have been referred back to original authority or considered in detail. The impugned order fails the test of legality and propriety and is set aside to enable consideration of the material that is claimed by the Learned Consultant to be crucial - matter remanded back - appeal allowed by way of remand. - E/1860 to 1862/2010 - A/90805-90807/2017/SMB - Dated:- 14-11-2017 - Shri C J Mathew, Member (Technical) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C of Central Excise Act, 1944 on M/s Tech Coat besides penalty of ₹ 2 lakh on Shri SA Shaikh and ₹ 1 lakh each on the other two noticees. 3. The assessee and two of the individuals filed appeal before the Commissioner of Central Excise Customs (Appeals), Nashik who vide order-in-appeal no: AKP/216 219/NSK/2010 dated 27th July 2010 allowed relief of ₹ 5,86,181/-, with like reduction in penalty under section 11AC of the Central Excise Act, 1944, and further reduced the penalties on the two individuals to ₹ 1 lakh and ₹ 50,000/- respectively. Relief was granted on the ground that they were entitled to cum-duty benefit and that CENVAT credit available to them could have been utilised. 4. Heard Learned Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6508.10 20 25.72 July 2002 5136.10 37 2.08 October 2002 4440.20 58 17.36 January 2003 14673.80 00 57.37 February 2003 1691.10 00 6.61 It can be seen from the above table that appellant no. 1 in the month of June-200l manufactured and cleared 6508.10 Kg of coated metallised polyester film and the corresponding electricity consumption is only 20 units whereas to manufacture i.e. slit the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dharrnendra Sonawane and Shri Praveen Choudhary reveal that these employees prepared challans/invoices in the name of SAS on instructions of appellant no. 2, who supplied them blank invoices and Challan books and used to collect it after issue of invoices/challans. Appellant no. 3 used to impart instructions in this regard. Therefore it is apparent that SAS was created on paper only to bifurcate the production of appellant no. 1, to evade payment of central excise duty 6. On a perusal of this finding of the first appellate authority, it is seen that the entire case has been premised on the electricity consumption, or its lack thereof, in the two entities that were concerned in the alleged collaboration to evade duty. The peremptory dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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