TMI Blog2024 (2) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... here is nothing in trade known as crude sandalwood oil but for the purpose of certain rectification, method of distillation is applied so also in the case of Patchuli Oil. M/s J.G. Spices Ltd. was one of his customer to whom he supplied imported sandalwood oil and Patchuli oils in containers in the same sealed condition without any further processing. Being confronted with the fact that during search and seizure made by DGCEI of the stock of raw materials and finished group available at M/s J.G. Spices Ltd. premises representative sample were drawn from each container and Directorate of Forensic Science report was called for vide letter dated 29.09.2010 and it conformed the material content was nothing but water to which the Appellant s reply was that they used to open the container, upon receipt and even Customs Officer do so before clearance but the cap of the drums were only put back without re-sealing. There are no hesitation to come to the conclusion that goods were imported in sealed condition, taken to M/s. J.G. Spices Ltd., Meghalaya and kept therein also in sealed conditions and again returned back to different traders including the Appellant in sealed conditions affi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i International proprietorship firm of Mr. Bharat Shetty is one of such buyers of such sandalwood oil and it had been availing CENVAT Credit against invoices issued by M/s J.G. Spices Ltd. Further, investigation by DGCEI also revealed that Mr. Bharat Shetty was not only the buyer of M/s J.G. Spices Ltd. but also its financer and it was aiding and abating the illegal operation of M/s. J.G. Spices Ltd. with profit sharing basis. On the basis of investigation reports, 16 units including M/s J.G. Spices Ltd. and M/s. Aditi International were noticed on 25.04.2012 with demands raised for the past five years, matter was adjudicated by the Commissioner, Shillong as common adjudicator being specially appointed by CBEC vide its Order No. 8/2012-C and the above noted duty, penalty and interest were confirmed against the present Appellant Mr. Bharat Shetty as properiter of M/s. Aditi International. 3. During course of hearing of the argument learned Counsel for the Appellant submitted that it had produced every detail of its transaction with M/s J.G. Spices Ltd. to the adjudicating authority including copies of transit pass issued by Forest Department Shillong, Railway, Transit receipt etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d back to M/s J.G. Spices Ltd. and after those were being shown as sold through issue of invoices, the purchasers were being taking the CENVAT Credits of the duty paid through those invoices but it was an organized crime done by group of people in a planned manner to syphon public money into their account and such evil design must have to be strongly dealt with. He took us to para 3.4 of the Commissioner s order to substantiate that recovery of E-mail exchange between the Director of M/s J.G. Spices Ltd. Priya Ranjan Dey and the present Appellant Mr. Bharat Shetty clearly indicated that there was profit sharing arrangement between M/s J.G. Spices Ltd. and Mr. Bharat Shetty even to the extent where profit earned by evading Government taxes like CST etc. were discussed and this Mr. Bharat Shetty was one of the founders of the firm called M/s. J.G. Spices Ltd., for which the order passed by the Commissioner needs approval of this Tribunal. 5. We have gone through the case record, relied upon case laws and the order in detail passed by the Commissioner. At the outset, it is to be noted that the eligibility of the credits availed by the Appellant on the basis of invoices issued towar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ronted with the fact that during search and seizure made by DGCEI of the stock of raw materials and finished group available at M/s J.G. Spices Ltd. premises representative sample were drawn from each container and Directorate of Forensic Science report was called for vide letter dated 29.09.2010 and it conformed the material content was nothing but water to which the Appellant s reply was that they used to open the container, upon receipt and even Customs Officer do so before clearance but the cap of the drums were only put back without re-sealing. While not denying the findings of Forensic Science Assam report, he stated in his statement that once goods were dispatched from there end, they have no control on it after it reached the destination but the same statement is contradictory to the investigation since, essential oils like sandalwood oil and patchuli oils seized in the premises of M/s. J.G. Spices Ltd. were all in sealed conditions. This being so, we have got no hesitation to come to the conclusion that goods were imported in sealed condition, taken to M/s. J.G. Spices Ltd., Meghalaya and kept therein also in sealed conditions and again returned back to different traders ..... X X X X Extracts X X X X X X X X Extracts X X X X
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