TMI Blog2017 (12) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... to see that all the three firms are managed and run as one single enterprise - Raw materials such as CPTs, sub assemblies etc have been shown as procured by M/s AEPL and also M/s BE through four fictitious firms who had their own bank accounts but did not have any physical presence. All the addresses were found fictitious. This clearly evidences the fact that the raw materials have been procured clandestinely by M/s AEPL. It stands admitted by Shri K.M. Garg, Director, M/s AEPL that these fictitious firms did not have any manufacturing facility and that the raw materials procured by M/s AEPL were only to make CTVs and further that the goods made by M/s BE and M/s SI were sold through M/s AEPL. M/s AEPL had got CTVs manufacture by M/s SI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , modifying or annulling the decision or order passed by the original authority, but it has no power to remand which was there prior to amendment to Section 35A in the year 2001. Undisputedly, the impugned order was passed in 2007, that is, much after deletion of power of remand to the Commissioner (Appeals). Being so, the impugned order remanding the matter cannot be sustained and is liable to be set aside and the matters need to be sent back to the Commissioner (Appeals) to deal with the same in accordance with the provisions of law Section 35A (3). 4. It has been informed that pursuance to the direction in the impugned order, the Additional Commissioner has already proceeded with the matter to quantify the duty. Needless to say that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sets were being sold through their trading Company i.e. M/s Anuj Electronics Pvt. Ltd. (AEPL). Shri Vinod Kumar Garg and Shri Krishna Mohan Garg were the Directors of AEPL and were also partners in M/s BE and M/s SI. During the period in question (Oct 1997, to July 1999), black and white televisions were fully exempt from payment of Excise Duty. M/s BE was registered for the manufacture of black and white televisions. The trading firm, AEPL, was also the owner of registered brand name of Eyeline for televisions and Coolers. The brand Televista , belonged to M/s Televista Pvt. Ltd, but M/s AEPL had authorization to manufacture and sell Televista brand of Televisions and Coolers. M/s AEPL did not have any manufacturing unit of its own, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by M/s SI in respect of colour televisions shown as cleared in the outward register . Details of 317 colour TVs were found reflected in the outward register . iii. Receipt of colour picture tubes (272 of JCT make and 48 No. of Samtel and 96 numbers of LG make) were found not accounted by M/s SI iv. During physical stock taking of the raw materials, shortages were noticed to the extent of 90 numbers of CPTs as well as 120 Nos. of cabinets. 7. Based on the above evidences Revenue has alleged that during the disputed period SI failed to account the entire raw materials purchased and used such unaccounted raw materials in the manufacture of CTVs which were clandestinely removed to trading unit M/s AEPL without payment of Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y concern. ii. Day books maintained by M/s AEPL recovered contained details of various raw materials procured and sales of finished goods, payments made and received. These documents contained the details of CPTs, cabinets, kits purchased by M/s AEPL as well as the CTVs sold by them. This clearly leads us to the conclusion that M/s AEPL had created, monitored and manipulated the account of M/s BE. iii. It was further found that the sales of Televista as well as Eyeline brands of CTVs by M/s AEPL shown in the above day book was more than what was account by both M/s SI as well as M/s BE. Even though M/s SI had obtained registration for CTVs, the evidences indicate that M/s BE had also manufactured and sold CTVs. iv. Since M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the brand names Eyeline as well as Televista . The documentary evidence recovered clearly show that M/s AEPL had sold goods with both the above brand names. It is further on record that only M/s BE and M/s SI were allowed to manufacture goods bearing these two brand names. All the three firms viz M/s SI, M/s BE and M/s AEPL belonged to the same family and are controlled and run by Shri Vinod Kumar Garg as well as Shri K. M. Garg. Both of them are partners in M/s BE as well as M/s SI and are also directors in M/s AEPL. It is not difficult to see that all the three firms are managed and run as one single enterprise. 13. Raw materials such as CPTs, sub assemblies etc have been shown as procured by M/s AEPL and also M/s BE through f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
