TMI Blog2018 (1) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... d - decided against appellant. - Ex. Appeal Nos. 60394 of 2013 & 55546 of 2014 - Final Order Nos. 50359 – 50360/2018 - Dated:- 30-1-2018 - Hon ble Mr. Justice (Dr.) Satish Chandra, President And Hon ble Mr. V. Padmanabhan, Member (Technical) Sh. V. K. Gupta Sh. J. P. Kaushik, Advocates for the appellant Sh. R. K. Mishra, AR for the respondent ORDER Per: V. Padmanabhan: These appeals have been filed by the assessee against the order in appeal No. 139/CE/D-II/13 dt. 20.08.2013 O-I-O No. 12/2014-15 dt. 31.07.2014 passed by the Commissioner of Central Excise (Appeals), Delhi-II. Both the appeals have been filed against different show cause notices but the grievances are the same. 2. Brief facts of the case are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose. 4. Sh. V. K. Gupta, ld. Counsel submits that the finished goods were seized value at an amount of ₹ 51,500/- and the raw material valued @ ₹ 3,72,960/- which is not unusual in the factory premises when the limit of the SSI exemption was ₹ 1.5 crore. Ld. Advocate further submits that the proper books of accounts, ledger accounts, returns were maintained and they were examined by the lower authorities. He further submits that one diary was recovered from Sh. Lalit Jain and he disowned the same submitting that it belongs to Sh. Prithibi Raj Jain who is residing with him and worked as a commission agent. He also submits that redemption fine is on higher side in proportionate to the recovered material. 5. On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as finished goods were found in the factory at the time of search on 08.08.2011. (ii) Some loose slips and sale invoices, recovered from the factory at the time of search indicated clearances of finished products by using invoices in the name of M/s Universal Enterprises, Shahdara to various customers. The firm in the above name was found to be not in existence at the address cited in the invoices. This firm was admitted to be a fake firm as confirmed by Sh. Chittaranjan Pradhan, Supervisor cum Operator of the appellant. Invoices of such fake firm was made use of by the appellant as cover for clandestine clearances made without payment of duty. (iii) Certain loose papers were recovered at the time of search at the residence of Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank account of the appellant, it was noticed that many of the sale transactions were found tallied with the credit entries in the bank account. Further, many of the entries found in the diaries were also duplicated in the loose sheets. (vii) The investigating officers recorded the statements of Sh. Lalit Jain on 08.08.2011, 10.08.2011, 30.08.2011, 11.04.2013 and 17.05.2013. In these very detailed statements, Shri Lalit Jain has admitted the fact that raw materials were being procured often by cash without accounting. He also admitted that the finished goods were also cleared clandestinely for payments received by cheque and sometimes in cash. It is seen from the RUDs that he has confirmed in details the transactions with each of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payments received and pending. Many of the entries found are corroborated by payments made/ received in the bank account of the appellant. Obviously, such transactions are accounted. This leads us to the reasonable conclusion that the documents found are a truthful account of the actual transactions made by the appellant in terms of procurement of raw material as well as manufacture and clearance of the finished products. We also note that in the several statements recorded from Sh. Lalit Jain, he has admitted in detail each and every entry found in such documents. The adjudicating authority has also given detailed findings in para No. 20 on how the appellant factory had the capacity to manufacture the quantum of goods alleged to have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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