TMI Blog2001 (7) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... . 20/2000, dated 28-9-2000 for alleged clandestine manufacture and clearance of M.S. Rods without payment of duty. By the same order he has also imposed penalty of Rs. 50,000/- each on Shri G. Odayappan, Managing Partner of the firm, Shri S.A. Premkumar (Director/Tech.) of M/s. Elango Industries Ltd. and Shri S. Elangovan, MD of M/s. Elango Industries Ltd., However, no appeals have been filed in respect of Shri Premkumar and S. Elangovan. 2. The facts in these appeals are that the appellants were issued with show cause notice for recovery of duty on alleged clandestine manufacture and clearance of M.S. Rods/Angles made during 1995-96 out of M.S. Ingots allegedly manufactured and cleared by M/s. Elango Industries Ltd., Karaikal, following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice was issued, the Commissioner has gone beyond the grounds taken in the notice. Ld. Counsel further submits that not only the Commissioner had not granted abatement of duty from cum-duty price in terms of Larger Bench decision in the case of Sri Chakra Tyres, but also the Commissioner has failed to notice that Sec. 11AC was introduced in the statute book only from 28-9-96 and no penalty equal to the duty amount could be imposed under this section for alleged clearances effected before this date. Similarly, he submits that Sec. 11AB was introduced from 28-9-96 only and hence no interest could be demanded on the duty demanded. He further pleaded that they are facing acute financial stringency in view of the fact the applicant's unit ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of both M/s. Super Steels and M/s. MSR Steel Agencies, Trichy. Ld. D.R. submitted that Managing Partner of the appellant firm Shri G. Odayappan in his statement dated 6-5-97 had clearly admitted that he had received M.S. Ingots without proper documents. He had admitted that he had received non-duty paid ingots in two ways viz. by way of dummy invoices and by way of loading extra quantity of ingots over and above the invoiced quantity and they had manufactured without accountal of M.S. Rods, M.S. Rounds, Bars and Angles out of unaccounted ingots and cleared the same without paying excise duty to M/s. Super Steels, Trichy and M/s. MSR Steel Agencies, Trichy. Therefore, he submitted that in order to safeguard the Revenue interest, the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1AB were introduced in the statute book only from 28-9-96, whereas the demand pertains to the period from March 95 to August 96. Therefore, Sections 11AB and AC were not applicable and the mandatory penalty to the extent of duty under Section 11AC and interest under Section 11AB cannot be imposed on the appellants. Further, since the principles of natural justice has been violated by the Commissioner by denying cross-examination of the persons whose statements have been relied upon and also in the absence of a finding by the Commissioner on the deposition made by S/Shri Odayappan, Mohammed Nazeer and Saifudeen, we are of the considered opinion that the Commissioner has not applied his mind properly and has not passed a speaking order on var ..... X X X X Extracts X X X X X X X X Extracts X X X X
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