TaxTMI 
TaxTMI 
TaxTMI 
2002 (12) TMI 525
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....from the following premises connected to the above group of companies under Mahazar : 1. The Office premises of M/s. Sujana Steels Ltd. as 56 Nammiah Maistry Street, Tondiarpet, Madras - 600 081. 2. The residential room of Shri Madhusudhan Rao, EDP Operator, at 25 Murugesan Street, T. Nagar, Madras - 600 017. Perusal of records revealed that the Sujana Group of Industries had imported HMS and Re-rolling scraps during the period March 1995 to July 1996 and also procured large quantities of shredded scrap imported by M/s. Metal Scrap Trading Corporation and diverted huge quantities of those imported scraps without bills and without accounting in their statutory records to various melting/re-rolling mills. In this connection statements were also recorded from the staff of M/s. Sujana Steels Ltd. Records seized from Sri Madhusudhan Road, an employee of M/s. Sujana Steels Ltd. revealed that the unit was involved in the sale of re-rollable scrap. Statements were recorded on various dates from Shri. P. Mallikarjuna Reddy, Chief Executive of M/s. Sujana Steel Ltd. at Madras, Shri Bankatlal Indoria who mediated the transaction, and Shri A. Joseph Stevedoring Supervisor of M/s. ....
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....ana Steels Ltd., through Shri Bankatlal Indoria and paid about Rs. 41 lakhs to persons known to M/s. Sujana Steels Ltd. through Shri Indoria for the purchases of scrap of around 400 tonnes. He accepted that the cash statement in file A/66 reflected the correct position. Perusal of the seized documents (in the form of Invoice books) revealed that M/s. Sujana Steels Ltd. had issued commercial invoices with serial numbers 101 dated 30-5-95 to 174 dated 27-6-95 and delivery challans Sl. Nos. 101 dated 30-5-95 to 150 dated 6-6-95 and 201 dated 3-6-95 to 225 dated 19-7-95 for the dispatch of scrap to "TS" and "UMI". The original and duplicate copies of the invoices were received back after unloading and the seal of the Check post Authorities found on the original invoices received back from the buyers, including M/s. Chamak Holdings Ltd., substantiate the fact of dispatch from the godown of M/s. Sujana Steels Ltd., Chennai. Shri Joseph, has inter alia, stated in his statement dated 19-11-96 that original delivery challans and invoices used for the transport of these re-rollable scrap were also pinned to the office copies of delivery challans and invoices; that the same was prepared by ....
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....s - M/s. Chamak Holdings Ltd.), Shyam Sundar and others for the disposal of imported scraps. Shri Ayyangar, Finance Manager of M/s. Sujana Steels Ltd., in his statement on 6-11-96, had also confirmed the fact of receipt of Rs. 2,01,08,644/- from the above parties in cash for the sale of scraps without accountal in the book. The documents seized also revealed that the following 4 transporters were utilized for the purpose of transporting the imported scrap to various units, including M/s. Chamak Holdings Ltd: - C. Loganathan, near Royapuram S.L. Transport, Ambattur. Arul Vijaya Sekar Lorry Service, Gummidipoondi Sri Karumari Amman Lorry Service Sri Mahalakshmi Transport Manjula Transport and further investigations also revealed that M/s. Sujana Steels Ltd. have procured unused lorry receipts from various transporters and utilized them to create records to make the Department believe that the goods had indeed been sent to their units located in and around Hyderabed. Shri Jospeh also confirmed the above fact in his statement. Shri A.V. Sekar, Shri P. Samuel, Shri L. Sriramulu, proprietors of M/s. A.V.S. Lorry Service, Gummidipoondi, S.L. Transport, Ambattur and S.R.T. Chennai....
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.... includes and encompasses the right to obtain copies of seized purported copies. Even otherwise, the principles of natural justice require that the Noticees are permitted to inspect the documents both relied upon or otherwise in the show cause notice and take copies of such documents so that they have the opportunity to defend themselves against the allegations, made in the subject show cause notice. In this connection, your attention is invited to the following decisions : (a) ASAPCS v. Collector - 1984 (18) E.L.T. 3 (T) (b) Ambalal v. UOI - 1983 (13) E.L.T. 1321 (S.C.) (c) Nainar v. Collector of Customs - 1975 T.L.R. 1351 (d) Jayantilal A. Shah and Anr. v. CCE, Mumbai - 1999 (34) RLT 466 (T) (e) Anilama Associates v. CCE, New Delhi - 2000 (39) RLT 848 (T) In the case of State of Uttar Pradesh v. Shatrughan Lal - A.I.R 1998 (S.C.) 3038, the Honourable Supreme Court while placing reliance on the decision in the case of Kashinath Dikshita v. Union of India - A.I.R. 1986 S.C. 2118, held that "..... the copies of those statements, though asked for by the respondents, were not supplied to him. Since there was a failure on the part of the appellant in this regard too, the Tri....
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....o be shown, as the denial of natural justice is, in itself, sufficient prejudice, The citizen is entitled to be under 'rule of law' and not the 'rule of discretion'". In the light of the above, the Appellants would like to submit that the learned lower authority should have supplied copies of the documents relied upon in the impugned Show Cause Notice and provided them reasonable opportunity to explain their stand/defence. In the absence of the above, the impugned Order-in-Original No. 13/2001, dated 30-3-2001/25-4-2001, is vitiated and against principles of natural justice and therefore liable to be set aside. Reliance on the statement of co-accused and failure to supply documents and personal hearing resulted in failure to cross examine Shri V.S. Jayaraman, Manager of M/s. Steel Dealers' Association (Madras) Pvt. Ltd., thereby causing prejudice to the Appellants. Hence, the penalty imposed under Rule 209A was incorrect and not sustainable in law. An order of remand from the Appellable Authority would meet the ends of justice so opines the learned Advocate. The lower adjudicator in anticipation of such an attack seeks to preempt the same by seeking to place reliance on Sanghi Te....
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....nly Shri Jayaraman requested for postponement of the hearing on the ground that his consultant was out of station. Repeated Personal Hearings were then fixed on 29-6-2000, 18-9-2000, 6-10-2000 and 9-3-2001 but to no avail. In the light of the above, whether there has been any infraction of natural justice or not has to be decided, since the learned Advocate for the appellant has stressed this issue before the lower adjudicating authority and reiterated the same before this appellate forum. Natural justice is a maxim meant to facilitate the smooth conduct of justice. The flexibility inbuilt in the doctrine is not meant to be twisted and subverted to sabotage the judicial process itself. The assessee was informed vide Department letter C.No. V/15/24/97 CX. Adj. dated 30-7-1998 that the documents sought for by them were not being relied upon by the Department. However they were granted the liberty to take copies of the documents desired by them. It is seen from the records that on 29-9-2000 a representative from the appellant's firm went to the office of the Additional Commissioner and took copies of documents. He has also informed the Department that he would return again to take fu....