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TMI Blog2018 (1) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in manufacturing and selling of Paheli Brand gutkha and Paheli brand desi gutkha. The premises of the factory declared by the appellant is exactly opposite to his residence. In the factory premises, it was found that the operation was carried out using electricity drawn directly from the nearby pole illegally and one DG set was also installed. On the basis of intelligence report, it was found that Shri Mukesh Ketheil was also operating from the three other premises which have not declared to the department. Search was conducted at the three undeclared premises and one residence on 23rd July 2008 and 24th July, 2008. A search was also conducted at the original factory premises and adjoining premises on 6.8.2008, from where more than 5007 Kgs. of the raw material was found. The department, after recording the statement and other material has made out the case of the clandestine removal on the main noticee Shri Mukesh Katheil. Penalties were levied on other persons who were involving in the illegal operation. Being aggrieved, the present appeals have been filed by the appellants. 3. With this background, Dr. Prabhat Kumar, ld. Counsel for the main noticee submits that the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 600 Kg. of raw material available in the factory premises and adjacent premises which was taken on rent. He submits that only one machine was declared to the department. The raw material is a perishable item which cannot be stored for a long period. Thus, it is evident that the raw material was used in the 12 other machines which were not declared to the department. The statement of Shri Pawan Kumar Pathak, Supervisor was recorded. He is the owner of one of the premises. In the statement, it is clearly mentioned by him as well as by other workers that operation was conducted by the main noticee i.e. Mukesh Katheil. He submits that these other illegal factories which were located 4 Km. from his residence were operated by the main noticee without declaring to the department. He submits that the opportunity was given to the appellant for cross-examination by issuing summons to other co-notices to appear before the adjudicating authority but they adopted tactics to delay proceedings. In the statements of the illegal owners of the premises where illegal factory going on, they confirmed that the raw material was received from the premises of the main noticee. Lastly, he submits that in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Shri Mukesh Katheil in his registered premises, but the same has been intimated as closed in the month of July, 2008. During the course of search, three undeclared premises have been detected where 12 packing machines were found working and engaged in packing 'Paheli' brand gutka bearing the registration number of Shri Mukesh Katheil. In terms of the Packing Machine Rules, Central Excise duty is liable to be paid on the 12 packing machines. However, the issue for adjudication is whether the duty liability is to be borne by Shri Mukesh Katheil, proprietor of M/s Shree Swaroop Products. 10. The evidences linking the manufacture happening in the three undeclared premises to Shri Mukesh Katheil is discussed below. 11. During the course of investigation, the department has interrogated and recorded the statement of the owners of the three premises, where machines were found working. Shri Pawan Kumar Pathak, Shri Raghvendra Singh and Shri Pholchand Coubey, owners of the three premises in their separate statements before the departmental officers have clearly admitted that their premises have been taken on rent by Shri Mukesh Katheil. They have, further stated that Shri Mukesh Kat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat his premises was taken on rent to Shri Mukesh Katheil for processing the raw materials and supply of the same to the illegal factories. 14. The clandestine nature of the operations carried out in the three unregistered premises is further evidenced by the fact that the operations were carried out either using the DG set or using electricity drawn illegally from the nearby electric pole. The search in the various premises also resulted in seizure of machines, finished goods, processed raw materials-mix ready for manufacture and packing material for gutka. Such seized goods have been confiscated in the impugned order. We uphold the same. 15. As per the grounds agitated in the present appeal, none of the facts are challenged. The fact of the illegal manufacture happening in the three premises using 12 packing machines have not been challenged at all. A feeble attempt has been made to raise the technical ground that the appellant had asked for cross examination of various persons whose statements have been relied upon in the proceedings. The same has not been denied by the adjudicating authority but in spite of several summons issued to all the witnesses, none of the witnesses tu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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