TMI Blog2018 (6) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... nation of the laptop does not appear to have been conducted in the presence of Shri Kailash Agarwal, Director. Neither Shri Kailash Agarwal nor Shri Manoj Agarwal, Director admitted to the truth of such data. In fact Shri Manoj Agarwal, in his statement has claimed that the deleted data (subsequently printed out) did not reflect the correct figures of production and clearance. It is also seen that Revenue has failed to carry out any further investigation into the allegation of clandestine clearance. Apart from the print out, no evidence has been brought on record regarding the unaccounted procurement of raw materials. No suppliers have been identified or investigated. Absolutely no investigation is on record regarding the buyers of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products of the appellant company (in which Shri Kailash Agarwal was also a Director) for the period 01.07.2011 to 07.07.2011. One external hard disc drive and two pen drives were also recovered from the residence, but nothing incriminating was found therein. 4. On the basis of the data in the laptop regarding removal of TMT Bars for the seven days, the department determined that a quantity of 445.590 MTs had been cleared without payment of duty and which had not been recorded in their RG-1. Shri Kailash Agarwal accepted this in his statement dated 9.7.2011 and paid the duty thereon of ₹ 14,14,324/- vide cheque of the same date. 5. In follow up action, the Central Excise officers searched the factory premises of the appellants o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p) involving duty of ₹ 4,41,336/-. 10. The show cause notice also proposed to deny cum-duty benefits to the appellants on the ground that since no duty had been paid on the impugned goods, no abatement towards duty payable was permissible. 11. Penal provisions were invoked against the appellant company and its Director, Shri Kailash Agarwal. 12. The appellants raised a number of issues including the evidentiary value of the printouts taken from the seized laptop, but the Commissioner rejected all these contentions and confirmed the full demand of ₹ 1,38,85,137/-. He imposed equivalent penalty on the appellant company and a penalty of ₹ 30,000/- on Shri Kailash Agarwal. The above order stands challenged in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs on a number of days whereas the daily stock account showed production. The deleted files did not show the production from 21.06.2011 to 30.06.2011 whereas the daily stock did, etc. iv. He argued that clandestine clearances must be proved with clinching evidence but in the present case the Revenue has failed to provide tangible evidence regarding procurement of raw materials; excess electricity consumption or clearance of such alleged clandestinely cleared goods. No evidence of any money trail of the huge amount of cash in connection with the alleged sale of unaccounted goods have been brought on record. He further submitted that no investigation has been conducted at either the buyer s end or even transporters. Consequently, he subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epancy was also accepted by Shri Kailash Agarwal in his statement who also deposited the duty due thereon to the extent of the ₹ 14,14,424/-. 18. The laptop was further subjected to forensic examination and certain deleted data files said to contain details of manufacture and clearance of finished products as well as stock and consumption of raw materials for the period May, June and July, 2011. The comparison of such data with statutory records resulted in the demand of Central Excise duty amounting to ₹ 1,38,85,137/-. It is pertinent to record that the alleged clandestine clearance during the above three months has not been admitted. There is a statement recorded from Shri Manoj Agarwal, another Director to the effect that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appear to have been conducted in the presence of Shri Kailash Agarwal, Director. Neither Shri Kailash Agarwal nor Shri Manoj Agarwal, Director admitted to the truth of such data. In fact Shri Manoj Agarwal, in his statement has claimed that the deleted data (subsequently printed out) did not reflect the correct figures of production and clearance. 21. It is also seen that Revenue has failed to carry out any further investigation into the allegation of clandestine clearance. Apart from the print out, no evidence has been brought on record regarding the unaccounted procurement of raw materials. No suppliers have been identified or investigated. Absolutely no investigation is on record regarding the buyers of such clandestinely cleared good ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
