TMI Blog2018 (7) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... other individual to deposit the duty amounts with the concerned bank periodically. The least that could have been done by them in these circumstances, was to establish through some credible material i.e. by summoning the bank records or citing the concerned individuals as witnesses and ensuring that their statements were recorded. The assessees however, chose to baldly assert that they were victims of fraud and that the First Information Report was in fact lodged against a certain individual, one Sachin, against whom investigations are ongoing. There is no denial of the fact that the appellants availed of and sought to take advantage of the fraudulent documents, which they pleaded to be genuine, even though the amounts in fact were neve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating and Appellate Authority, and later affirmed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), are wholly erroneous. 2. All the appellants manufacture stainless steel strips which are excisable. According to the plea, they claim to have availed the facility of a compounding scheme and deposited the excise duty leviable in accordance with the provisions of the Act and Notifications, in terms of the required form (Appendix II). All the appellants, have their own units located in Wazirpur Industrial Area. The Commissioner of Central Excise, by identically phrased show-cause notices issued in March 2009, called upon the assessees to show cause as to why duty and appropriate penalty ought not to be levied on the al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort payment, on grounds of fraud or collusion or any wilful representation or suppression of facts , necessarily means that there ought to be an active participation by the individual, against whom such notice is issued. It is claimed that the assessees consistent case or rather plea was that the First Information Report (FIR) was in fact, lodged by them upon immediately becoming aware that the amounts were not deposited with the bank. Given these facts and the pendency of criminal investigation, it could not be urged much less found that they were perpetrators of the fraud justifying the invocation of an extended period. Learned counsel relied upon the authority of the Punjab and Haryana High Court decision in Commissioner of Customs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned individuals as witnesses and ensuring that their statements were recorded. The assessees however, chose to baldly assert that they were victims of fraud and that the First Information Report was in fact lodged against a certain individual, one Sachin, against whom investigations are ongoing. 5. The judgment in Aafloat (supra) states that if one takes advantage of a set of circumstances which turns out to be based upon fraud, he or it has to suffer the consequences. The Court then was dealing with a situation of importation of gold under forged Special Import License (SIL). The decision is contrary to the Punjab and Haryana High Court judgment in Vallabh Design Products (supra) (which the appellants rely upon). Consequentl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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