9911796707
TMI Blog2018 (8) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... ise, Lucknow, vide which the demand of duty to the extent of Rs. 50,86,570.00/- stands confirmed against M/s Frontier Alloy Steels Ltd. (M/s FASL) along with confirmation of interest and imposition of penalty of identical amount in terms of Section 11AC of the Central Excise Act. In addition penalty of same amount stands imposed upon Shri K.L. Bhatia and Shri Chetan Bhatia, Directors of the appellant Company. Further, penalty of Rs. 5 lakhs stands imposed on each Shri C.D. Bhatia and Shri S.C. Bhatia, the other Directors of the appellant Company. 2. After hearing both the sides duly represented by Shri Amit Mahajan & Shri Abhinav Prasad, Advocates for appellants and Shri Mohammad Altaf, Assistant Commissioner (AR) for revenue, we find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial, Kanpur unit has manufactured goods, which does not stand reflected by them in the statutory records and stands further cleared in a clandestine manner without payment of duty. 4. It is seen that on the above basis proceedings were initiated against the Kanpur unit for confirmation of demand. The same were confirmed against the Kanpur unit along with imposition of penalties on the unit as well as on various Directors. The appeals filed by the Kanpur unit as also by the directors were disposed of by the Tribunal vide its Final Order No.02-06/2008-EX dated 10.01.2008. Vide the said order, the confirmation of demand against Kanpur unit and also imposition of penalties on various appellants were set aside by observing that the certificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SL-2, was receiving the input from other sources and took the credit. This observation obviously is irrelevant for deciding the present issue which pertains to the removal of unaccounted goods by FASL, Malwan to FASL, Rania. * The present demand arise out of totally different set of records. The Hon'ble Tribunal has not made any observations regarding these records or their genuineness. * Even if for the sake of argument it is assumed that charge of clandestine removal was not found established against FASL, Rania that per se, does not lead to the conclusion that there was no procurement of unaccounted raw material either it is a fact that S.S. rounds were only one of the final product off FASL, Rania. They were manufacturing other fini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilized the same for clandestine manufacture and removal. As such it is seen that the allegations as also the evidences in both the cases are interconnected. As the Tribunal has set aside the demand against the Kanpur unit, this fact leads to the inevitable conclusion that the Tribunal has not agreed with the revenue's stand that the Kanpur unit was receiving raw material from Fatehpur unit. This means that the raw material was never cleared from the Fatehpur unit, in which case the charges of clandestine removal from the Fatehpur unit to the Kanpur unit cannot be upheld. As such on this ground itself we hold that the duty demand against the manufacturing unit is not sustainable. Accordingly, we set aside the same along with setting aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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