TMI Blog2005 (10) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... g to confirmation of demands on kutcha slips which were recovered through investigation from the factory premises for the period July 95 to May 97. The Commissioner has concluded that the goods have been manufactured in terms of these kutcha slips relating to period July 95 to May 97 and has rejected their explanation that these kutcha slips did not bear signature of any persons. The author of kutcha slips have not been examined and that no corroborative evidence has been discovered by the investigating officers with regard to use of extra electricity; flow back of funds, purchase of raw materials, sale of goods clandestinely. It was also contended that these kutcha slips relate to different types of checks carried out by them and categoriz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of the matter. There was no tenable, direct and corroborative evidence nor there was any admissions made by the partners of the appellant firm. The department has not investigated with regard to the purchase of inputs, sale of final product and flow back of funds. Therefore, he submitted that the order pertaining to confirmation of demands of seized kutcha slips of period in question is not sustainable in law and he submits that the issue of non-confirmation of demands on kutcha slips is covered by the following judgments. (1) T.G.L. Poshak Corporation v. CCE, Hyderabad - 2002 (140) E.L.T. 187 (Tri. - Che.) (2) Ghodavat Pan Masala Products Ltd., v. CCE, Pune - 2004 (175) E.L.T. 182 (Tri. - Mum.) (3) Essvee Po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot contested. 6. The contest is pertaining to demands computed on the basis of kutcha slips found in the premises for the period April 95 to April 96. There is no signature on these kutcha slips of any person nor there is any corroboration pertaining to receipt of inputs, manufacture of final product and sale to any purchaser. A simple conclusion has been drawn that as they had adopted the modus operandi in accompanying kutcha slips with unaccounted goods, therefore goods might have been manufactured in terms of the seized kutcha slips and cleared without payment of duty. Investigation authorities ought to have investigated at a greater length and should have also noted the excess electricity consumed, which is a factor for coming to conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same is reduced to Rs. 5 lakhs. The penalty imposed under Rule 173Q(1) with regard to clearance prior to 28-9-96 which also pertains to the seized goods is required to be confirmed. Hence it is confirmed. The contention of the counsel that there cannot be separate penalty on partners is covered by large number of judgments. Therefore separate penalties under Rule 209A on the partners of the appellants is set aside. There is no ground to impose penalty on proprietor of M/s. JP Textiles so also on proprietor of M/s. Many synthetics and proprietor of M/s. Gopal Textiles. Therefore, the penalties on all these persons are set aside. Penalty on the owner of the vehicles is also set aside as there is no proof of his connivance in the evasion of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
