9911796707
TMI Blog2023 (11) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : Mr. H. Jayathirtha , AR ORDER Per : DR. D. M. MISRA These three appeals have been filed against common Order-in-Appeal No.163-165/2009 dated 27.10.2009 passed by the Commissioner of Central Excise (Appeals-I), Bangalore. 2. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of TOR Steel i.e., MS Bars/Flats falling under Chapter subheading No.7214 90/7216 10 of the Central Excise Tariff Act, 1985. They have been availing SSI exemption under Notification No.8/2003-CE dated 01.3.2003 declaring that the total value of clearances is less than Rupees one crore. On the basis of intelligence, on scrutiny of their records, by Headquarters Preventive Unit on 18.8.2006, it was noticed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.2006 to 30.11.2006 & December 2006 to March 2007 demanding duty of Rs.3,62,925/- & Rs.2,29,616/-, respectively, for the clearances made during the said period without obtaining registration and without payment of duty. 3. The said show-cause notices have been adjudicated by passing a common Order-in-Original on 12.12.2008 confirming the demands raised in the respective show-cause notices with interest, imposition of personal penalty of Rs.50,000/- on Shri Jeeva Prakash and Rs.25,000/- on Shri B.M. Mastana. Aggrieved by the said order, appellants filed appeals before the learned Commissioner (A), who in turn rejected their appeals. Hence, the present appeals. 4. None present for the appellants. The matter has been listed on 30.05.2023, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s purchased during June and July 2006 as mentioned in the notebook recovered from the possession of Shri Bharat Yadav from various parties revealed that except in case of the suppliers viz., M/s. Bhuwalka Industries Ltd. and M/s. Nav Karnataka, Bellary, the quantities mentioned in the said notebook pages were tallying with the purchase invoices kept in the factory premises, whereas other purchase entries recorded in the said notebook did not have any records in the factory premises of the appellant. From the statement of the supervisor Shri Bharat Yadav, who was available in the factory at the time of visit of the officers, admitted the fact that the quantity of raw material recorded in the notebook had been purchased and used for manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Bharat Yadav mentioned the name of the parties from whom they had received raw materials during the period 1.3.2006 to 2.8.2006. He submits that except the receipt from M/s. Bhuwalka and M/s. Nav Karnataka, the other purchases were not accounted for in the register and admittedly used in the manufacture of finished goods meant for clearance without payment of duty. Even though the partner of the appellant did not accept the statement of Shri Bharat Yadav, and later disputed the two pages of note book, however, no plausible explanation has been furnished. In these circumstances, the department could establish that there was clearance of the goods without payment of duty. 7. We have carefully considered the records of the case, the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007 for the period 01.12.2006 to 31.3.2007, it is submitted that the duty has been calculated and demanded on the basis of clearances noted in the show-cause notice dated 5.9.2007. It is their contention that during the period 2006-07, the total clearance value of goods manufactured stood at Rs.99,39,180/- which is certified by a Chartered Accountant and included in the Profit and Loss Account, hence, they have not exceeded the SSI exemption limit of Rs.100 lakhs for the Financial Year 2006-07. 8. On scrutiny of the evidences of alleged clandestine manufacture and clearance of goods narrated in the notice dated 5.9.2007, we find that the department on the basis of two pages notebook retrieved from the personal possession of Shri Bharat Yad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seems to rest not on any credible piece of evidence. Revenue has also not collected the details of raw material suppliers nor any attempt was made investigating said raw material supplier from the either questioning shri Bharat Yadav or the partner. Also, not an iota of evidence was placed on record indicating clearance of the manufactured goods clandestinely by bringing on record the evidence of Transporters or the purchasers of finished goods. Besides the basis of consumption of electricity adopted unilaterally in calculating the manufacture and clearance of finished goods without verification of the same during investigation from the supervisor or the partner, or through any corroborative evidence, in our opinion, cannot be considered as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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