TMI Blog2019 (7) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent alternate source. The Department has also accepted the Central Excise Duty on the manufactured excisable goods by the appellant. The reasonable precaution was taken by the appellant in procuring the goods from the registered dealers who were registered with the Department. The penalty imposed on Shri Jugal Kishor, Director of the Appellant Company is also set aside. Appeal allowed - decided in favor of appellant. - Excise Appeal No. 51899, 52006 of 2018-EX(DB) - Final Order No: 50690-50691/2019 - Dated:- 2-1-2019 - Shri Anil Choudhary, Member (Judicial) And Shri Bijay Kumar, Member (Technical) Shri Jitender Singh, Advocate for the appellant Shri R K Mishra, Authorised Representative f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nati Alloys Private Limited) Gurgaon and M/s UAPL (M/s Unnati Alloys Private Limited) Jaipur. The Director of the appellant company submitted the documents and also payment particulars for purchase of inputs from the companies belonging Shri Amit Gupta as stated above. The Investigating Officer also recorded the statement of the appellant s Director , Shri Jugal Kishore, who is also co-appellant of this case. Shri Jugal Kishore in his statement stated that the appellant purchased the cast iron, Copper Rods/Copper scraps, from registered dealers, namely Moral Alloys Private Limited and Unnati Alloys Private Limited on payment, including taxes thereon through banking channels. These items were utilised by the appellant for manufacture of fini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion out of the payments received through RTGS. (iii) That he is not director or authorised signatory of M/s Unnati Alloys Pvt Ltd. and M/s Moral Alloys Pvt. Ltd. (iv) That the inquiry conducted by the DGCEI officers was restricted only to M/s Malhotra Cables Pvt. Ltd. and M/s Copper Tech Metal Pvt. Ltd. and that no question were asked about any other manufacturer. 5. Another witness, Shri Sanjeev Maggu, in his cross examination retracted his statement before the Adjudicating Authority, by stating that: (i) His statement before DGCEI was not correct. (ii) That statement was already typed on the computer in the office of DGCEI, Delhi and he was forced to sign it rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of duty under proper invoice by maintaining proper accountal thereof and returns were also filed which were subjected to scrutiny by the Jurisdictional excise officers. All these transactions of purchase and sale of goods were made through banking channels and the appellant took reasonable precaution to purchase of the goods/inputs from registered dealers and hence the appellant is not liable for penalty in view of the decision of Hon ble Allahabad High Court in case of Commissioner of Central Excise vs. Juhi Alloys Limited [2014 (302) ELT 287 (Allahabad) (iv) Ld. Advocate also submitted that the similar issue regarding purchase of inputs/goods from Shri Amit Gupta, through their various companies, were subject matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In all these cases the Cenvat Credits have been allowed to the manufacture and penalty imposed on the dealers were also set aside. (v) It is also the submission of Ld. Advocate that the goods purchased were transported in the appellant s own truck. The Department has also failed to adduce evidence of purchase of other raw materials, which were required for the manufacture of finished goods from any alternate sources. (vi) It was also submitted that the demand, as a whole, is time barred as the demand for period 2011-12 and 2012-13 has been issued on 27/04/2015, that is after the lapse of three years. The appellant had maintained detailed records, of receipt of inputs in RG-23A Register also. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out the genuineness of sales of the appellant company which is about 50% of the total turn over. Therefore, when the sales are genuine, then such genuine sales is possible only with genuine purchase of standard raw material. The allegation that appellant was procuring the same from the open market on cash basis, is not sustainable for the reason that the appellant has to maintain higher standard of quality to make major supplies either for export or to the companies which are operating in atomic energy, power, defence, oil refining etc. In the instant case, no physical verification of stock was done. No shortage of physical stock was identified. 10. We also find the appellant has rightly contented that the similar issue has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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