9911796707
TMI Blog2022 (10) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... Officers conducted the search in the factory premises on 10.06.2014 including physical stock taking of the finished goods lying in the factory was done. On comparison with the recorded stock, there appears to be shortage of 151.95 MT of MS Angles. On being questioned about the shortage, Sh. Ram Gopal Choudhary, Manager Accounts stated that the goods found short have been removed by them without raising invoices. The goods found short were totally valued at Rs. 58,21,009/- on which Central Excise duty of Rs. 7,19,477/- appeared to be payable. This amount was tendered by cheque dated 10.06.2014 towards the said duty liability. Certain documents were recovered and resumed for further investigation vide panchnama as detailed in Annexure -'B' t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingh. He further confirmed that the slip pad and weighment slip were prepared by Sh. Satnam Singh and the despatch summary was prepared by him. On being asked about the said invoices in respect of quantity shown as cleared as per the weighment slip and the despatch summary, he stated that total quantity of 95.950 MT of finished goods have been cleared without preparing invoices and/or payment of duty. On being asked about the slip pad, weighment slip and despatch summary for the previous period, he stated that the same are destroyed on daily basis. He also agreed with the manner of stock taking. 3. Further, during investigation, statement of Director of the appellant Sh. Rajesh Garg was recorded on 13.11.2014 who inter alia confirmed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcess cash amounting to Rs. 2,34,127/- was also found in the premises during the search, which was also surrendered as undisclosed income of the appellant. Thus, the total amount of Rs.3,01,69,127/- was admitted as undeclared income by Sh. Rajesh Garg. 6. Further statement of Sh. Rajesh Garg, Director, was recorded on 04.11.2015, wherein on being confronted with the panchnama dated 10.06.2014 drawn at the factory alongwith statement of the Despatch Clerk, Sh. Garg admitted the same to be correct and admitted the shortage (in stock) detected at the time of search. Further, on being confronted with documents / diary resumed during Income Tax search marked as 'AS-9' as regards the cash transaction recorded therein, he stated that these cash t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11AC as well as Rule 25 of Central Excise Rules. Penalty was also proposed on the Director, Sh. Rajesh Garg under Rule 26 of Central Excise Rules. 8. The show cause notice was adjudicated on contest and the proposed demand was confirmed appropriating the amount of Rs.7,19,477/-. Further, equal amount of penalty Rs.44,48,381/- was imposed under Section 11AC. Further equal amount of penalty was also imposed under Rule 25 of the Central Excise Rules, 2002. Personal penalty of Rs. 5,00,000/- was imposed on the Director, Sh. Rajesh Garg under Rule 26 of the Central Excise Rules. 9. Being aggrieved, the appellants preferred appeal before the Commissioner (Appeals) who was pleased to reject the appeal of both the appellant company and the Direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income (net taxable) of Rs.2,85,82,171/-. 10.1. Learned Counsel further urges that as the undisclosed income have been accepted, relating to property business by the Income tax Authority, the inference drawn by the Court below - Central Excise Authority is bad and erroneous, and accordingly the demand of Rs.37,28,904/- is fit to be set aside on this score alone. 10.2. So far the demand of Rs.7,19,477/- is concerned on account of shortage of finished stock pursuant to physical verification on 10.06.2014, it is evident from calculation sheet that only one piece of MS angle of each size was weighed and as per the weight of one piece the same was multiplied with the number of pieces and the weight thus ascertained. Thus, there is element ..... X X X X Extracts X X X X X X X X Extracts X X X X
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