TMI Blog2005 (7) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... ared the above referred goods without payment of duty by fraudulently removing the goods in the name and under the documents of M/s. Engineering Industries. The evasion of duty was done with full knowledge and involvement of three persons, viz. Shri Subhash Chandra Sharma, Shri Manoj Sharma and Shri S.P. Sharma. 2. Acting on an intelligence, the factory premises of M/s. Engineering Industries (EL), Mumbai, M/s. Sapna Coils Pvt. Ltd. (SCPL), Palghar and M/s. Navdeep Engineering (NE), Palghar, as well as one Guest House of this group situated at Porbunderwala Building, Chapsi Bhimji Road, Mazgaon, Mumbai-400 010, were searched by the Officers of DGAE, Zonal Unit, Mumbai on 22-7-1997 with the assistance of the Officers of Central Excise Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... para 30.1 of the impugned order, which pertains to the statement of Shri Manoj Sharma, Proprietor of M/s. Engineering Industries and Shri Subhash Chandra Sharma, Proprietor of M/s. Sapna Engineer, it may be stated that both these persons have retracted their statements, but the Commissioner had relied upon such statements without there being any corroboration. Shri Manoj Sharma during his cross examination had categorically stated that the goods in question were manufactured by them in the factory of M/s. Engineering Industries. It is further stated that the machines required for manufacture of condensers, evaporators and cooling coils were installed in their factory, which were enough to complete the entire process of manufacture of conde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts merely because the appellants were equipped to manufacture the goods in question. 8. Another factor found favour with the Ld. Commissioner to hold that the goods in question were not manufactured by M/s. Engineering Industries was that they were not registered with the Excise Department to manufacture coils during the relevant period. It was mandatory to mention the name of the product to be manufactured by the unit in the licence/registration certificate and further M/s. Engineering Industries never represented that they had the necessary machinery or equipment to manufacture the coils. This finding was recorded merely on presumption inasmuch as that neither Excise registration certification of M/s. Engineering Industries was produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ineering Industries, upon which strong reliance is placed in the notice, were immediately retracted and when such retractions were on record, the Department ought to have collected independent evidence to corroborate the allegation from the customers of the appellants as to whether the goods received by them under the cover of invoices of M/s. Engineering Industries were in fact manufactured and supplied by the appellants and in this case no such investigation was carried out. 12. Shri Kallianpur, Materials Manager of M/s. Voltas Ltd., in his cross examination revealed that before registering their vendors, the authorized engineers are sent for inspection of the vendors site and that M/s. Voltas would place orders only after they are fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-97 and the statement given by them is not admissible evidence as they were in the custody of the officials as accused. The appellants rely upon the case of Shri Kantilal Patel v. CCE, Allahabad reported in 2000 (126) E.L.T. 462 (All.) - (Para 19 of the judgment). 16. The investigating agency searched and recovered all the documents pertaining to the procurement of raw materials and sale of finished goods. However, no co-relation of raw material to the finished goods have been done to establish that the raw material procurement by the appellants far exceeds their clearance of finished products on payment of duty, which could have lent credence to the allegation that parts of goods manufactured by the appellants were cleared under the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing capacity of the appellants. Even if all the three shifts were working, the appellants could not have manufactured all these quantities over and above their regular clearances on payment of duty. The Ld. Commissioner did not record any findings on this aspect. 21. The very first statement of Shri Manoj Sharma, Proprietor of M/s. Engineering Industries, recorded on 23-7-1997 (Page 176) confirms that M/s. Engineering Industries were manufacturing condensers of refrigeration and air-conditioning and spares thereof. Therefore, the allegation that M/s. Engineering Industries were not manufacturing the goods in question is not correct. 22. In the light of the aforesaid observations and discussions at length and in the light of ear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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