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TMI Blog2018 (1) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... ative (DR) - for the Respondent/appellant. ORDER Per. B. Ravichandran These 7 appeals are on the common dispute and are accordingly taken up together. 6 appeals are by the assessee/ appellants and one is by the Revenue. The brief facts of the case are that based on certain information that M/s Gopal Corporation Limited, engaged in the manufacture of flavoured chewing tobacco with the brand name Gopal Zarda, has evaded central excise duty by clandestine manufacture and clearance of their product, the officers of Central Excise conducted search and verification in various premises connected with the said manufacturer and also in the premises of dealers of the said goods and various other units which were alleged to be dummy units created t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterprises, M/s Bhagwati Enterprises, M/s Heena Foods, M/s Manav Enterprises, M/s RBM Industries, M/s R.K. Enterprises and M/s Bhumika Perfumers. In other words, though the show cause notice proposed clubbing of clearance of 9 units for the purpose of SSI exemption, the Original Authority held that the clearances of only 3 units are to be clubbed and the proceedings against other 6 units could not be sustained. Both the Revenue and the assessee /appellants were aggrieved by the said order and filed these appeals. 3. The learned Counsels appearing for the appellants/assessee submitted that the Original Authority failed in appreciating the factual details submitted by the appellants during the course of adjudication. The 3 units whose turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clubbing of turnover of legally existing independent units cannot be sustained. Documentary evidence are necessary to corroborate the oral statements and the evidences in the form of records maintained by these units should be considered rather than uncorroborated oral statements. 5. The learned AR contested the appeals by the assessee/ appellants stating that the officers conducted detailed verification in numerous premises and recorded statements of all the relevant parties. After careful analysis of the evidences gathered, a cogent sustainable case was brought out against the various noticees. The Original Authority while accepting that 3 of the units were dummies and are to be treated as one for SSI exemption, erred in not appreciating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority erred in relying on certain contrary submissions without supporting evidence. The learned AR submitted that all the 9 units had closed down abruptly immediately after the search operation conducted by the officers. The payment of rent of the premises of each of these units were either arranged or paid by M/s Gopal Corporation in cash. All the 9 units were under pervasive and complete control of Shri S.K. Agarwal, Director of M/s Gopal Corporation. The learned AR finally prayed for setting aside the impugned order in so far as it pertains to dropping the proceedings against 6 units and remand the matter to the Original Authority for a fresh consideration of all the evidences and facts as brought out in the show cause notice. 7. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1944 have not been retracted during the investigation and before the issue of the notice. The allegations were denied only through replies to the notice. Relying on various decisions of Apex court, he held that these statements are valid piece of evidences though there are no documentary evidences to support the facts contained in the statements. He proceeded to record that if the facts emerging at the stage of adjudication are contrary to the facts recorded in the statements, these statements will loose their evidentioinary value. 8. On the above reasoning, the Original Authority proceeded to examine the status of each one of the units alleged to be dummy units in the show cause proceedings. He held that 3 of these units (M/s V.L. En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. When the confessional statements which were un-retracted were relied upon by the Original Authority, the same has not been found sustainable in respect of some of the noticees only on the ground that certain counter evidences have been produced. 10. On overall analysis of the impugned order with reference to various allegations made in the show cause proceedings, we note that the grievances now placed before us by all the appellants (both Revenue and assessee) are having sufficient force to persuade us to hold that the impugned order as it stands cannot be sustained. Some of the serious infirmities in appreciation and analysis of evidences were recorded by us, as above. We are of the considered view that the Original Authority has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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