1998 (7) TMI 303

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....r Sahkar Katai Mills, Sitapur. Shri A.T. Khan was the Excise Clerk and Shri Shristi Narayan Jha was the Marketing Assistant and M/s. Anandeshwar Yarn Agencies were the agents for sale of the yarn. 3. On a visit by the Central Excise Officers to the Katai Mills revealed that whereas the bales of 32 count which were marked as Straight Reel (SR), were on opening found to contain cotton yarn Straight Reel (SR) hanks only, but other bales (3 bales of 2 count; 8 bales of 24 count; 28 bales of 2/10 count and 33 bales of 2/24 count) though marked on the face of the bales as SR, were found to actually contain cotton yarn in Cross Reel (CR) hanks of the same count. Shri S.N. Sharma, Authorised Signatory of the Assessee Company in his statement ....

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....led that, though the bales were marked as SR yarn, the same were found to contain CR hanks. So also was the case in respect of the goods found in the godown 5. Detailed investigations were conducted by the Officers and the Assessee Firm has been asked to explain as to why duty amounting to Rs. 23,27,099/- in respect of CR hanks, totally valued at Rs. 4,04,71,280/- should not be demanded from them and why the seized bales should not be confiscated and why penalty should not be imposed. The Assessee furnished the explanation. After careful consideration of the submissions made by the various Noticees, the ld. Commissioner held as indicated before. About the role of various persons/parties and their involvement in evasion, the ld. Commis....

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.... his behalf. 9. About M/s. Anandeshwar Yarn Agencies, the ld. Consultant submitted that this was an independent firm and was acting on a commission of 1% and was not only a commission agent to the present Assessee Firm, but was purchasing yarn from a number of mills including the present assessee. Thus, he was doing the business in the normal course of trading and was not a person concerned with the removal of dutiable goods without payment of duty. The ld. Consultant, therefore, submitted that since Shri Shristi Narayan Jha and M/s. Anandeshwar Yarn Agencies had no role at all in the removal of the dutiable goods without payment of duty, therefore, no penalty should have been imposed on them and prayed that pre-deposit of penalty may....