TMI Blog2018 (2) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of 22,453 boxes of glazed vitrified tiles seized during the course of visit to the factory of the Appellant, the ld. Commissioner (Appeals) observed that even though the Director Shri Chetan K. Patel in his statement furnishing explanation on the excess stock submitted that approximately 10,000 boxes were in semi-finished condition and not reached at RG-1 stage, and certain quantity of tiles were rejected and returned by their customers, however failed to furnish any evidence in this regard before the authorities. Hence, the explanation furnished by the Director of the Appellant was not accepted and confiscation was directed. Considering the circumstances, shortage in the stock, clearance of the of vitrified tiles cleared clandestinel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment that the Appellant had allegedly manufactured and cleared finished goods clandestinely without payment of duty. Admitting to the shortages, clandestine clearances the Appellant paid total duty of ₹ 1,72,743/- on the same day. Further investigation led to the seizure of vitrified Tiles cleared without payment of duty lying in the customer s premises viz. M/s Delite Ceramics. On completion of investigation, show cause notice was issued demanding duty of ₹ 8,09,807/- alleging clearance of goods without payment of duty, and proposal for penalty; confiscation of the excess quantity of finished goods seized and personal penalty on other co-noticees. On adjudication, the demand was confirmed with equal amount of penalty and am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y had received the goods from the Appellant or through M/s Labh Traders, hence, the allegation of clandestine clearance is not tenable in law. Further, he has submitted that confessional statements and random, scattered challans of M/s Labh Traders and LRs, found in the premises of the Appellant itself does not establish clandestine manufacture and clearance of goods by the Appellant through M/s Labh Traders. Further, he has submitted that the Department has only carried out investigation without ascertaining the factual allegation undertaking proper verification of the documentary evidences, therefore, the allegations made in the show cause notice are totally baseless and unfounded. In support, he has referred to the judgment of the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty and receiving consideration was carried out by creating a fictitious firm as M/s Labh Traders. The said firm was found to be non-existence; on verification of the address of the proprietor mentioned in the bank records of the said firm. Further, he has submitted that the buyers in their statements disclosed that purchases were made by them through the representative of the Appellant even though the payments were made in the name of M/s Labh Traders as per the request of the Appellant s representatives. Shri Chetan K. Patel, Director of the Appellant responsible for all administrative works, including day to day functioning of central excise customs work of the company, in his statement has accepted clearance of finished excisable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad of clarifying the position, how the LRs of different transport companies lying in the premises where the consignor was shown as M/s Labh Traders, the Appellants made a bald attempt in assailing the order of the ld. Commissioner (Appeals) on this issue. On the balance of amount of ₹ 6,02,823/-,the ld. Commissioner (Appeals) mainly analyzing the evidences of the buyers of the vitrified tiles observed that the Appellant had created a fictitious firm in the name and style of M/s Labh Traders and the illicit clearance of vitrified tile was made in the name of said fictitious trading firm to various customers. On detailed analysis of the evidences of the customers, who purchased the Glazed Vitrified Tiles, neamely, Shri Pragesh Kumar Ram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cross-examination of these evidences. Besides, from the statement of the Director, it is concluded by the authorities below that M/s Labh Traders was a fictitious firm and created only for the purpose of clearance of vitrified tiles by the Appellant without payment of duty to various traders. On the issue of confiscation of excess quantity of 22,453 boxes of glazed vitrified tiles seized during the course of visit to the factory of the Appellant, the ld. Commissioner (Appeals) observed that even though the Director Shri Chetan K. Patel in his statement furnishing explanation on the excess stock submitted that approximately 10,000 boxes were in semi-finished condition and not reached at RG-1 stage, and certain quantity of tiles were rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X
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