TaxTMI 
TaxTMI 
2005 (8) TMI 494
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....d and redemption fine determined are as follows - (i) I order the following processing units to pay Central Excise duty amounting to rupees as indicated against each of them on the processed fabrics so removed by them to M/s. Nangalia Group of Companies during the period from 1-4-1997 to 16-12-1998, under Section 11A(2) of Central Excise Act, 1944:- SR.NO. NAME OF PROCESSING UNIT DUTY AMOUNT (RS.) 1 M/s. Anjani Dyg & Ptg Mills 5,76,124/- 2 M/s. Asian Dyg.& Ptg Mills 3,16,122/- 3 M/s. Gomti Processors Ltd. 8,836/- 4 M/s. Mamta Dyg & Ptg Mills 13,422/- 5 Nitharika Dyg & Ptg Mills 61,236/- 6 Oriental Dyg & Ptg Mills 12,832/- 7 Prakash Dyg & Ptg Mills 5,042/- 8 Rajlaxmi Prints Pvt. Ltd. 56,36,843/- 9 Rupa Dyg & Pt....
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....,82,000/- 7 Shri Habib Rehman Abdul Gani Unwala, M.D. of Oriental Dyg & Ptg Mills 700/- 8 Shri Jay Prakash S. Bhomia Authorized Signatory of M/s. Rupa Dyg & Ptg Mills 4,800/- 9 Shri Mahendra Singh F. Singhvi Director of M/s. Mamta Dyg & Ptg Mills 700/- 10 Shri Manish R. Gupta Director of M/s. Nitharika Dyg & Ptg Mills 3,000/- 11 Shri Naresh D. Vanshai Authorized signatory of M/s. Prakash Dyg & Ptg Mills 250/- (iv) I also impose penalty on following firms/persons of M/s. Nangalia Group of Companies under 209A of Central Excise Rules, 1944 as under. Sr. No Name of processing unit Amount of penalty (Rs.) 1 M/s. Nangalia Fabrics 40,00,000 2 M/s. Nangalia Fabrics Pvt. Ltd. 1,20,000 3 M/s. Nangalia Texturisers Pvt. Ltd....
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.... fine imposed (Rs.) 1 M/s. Anjani Dyg & Ptg Mills 30,000/- 2 M/s. Asian Dyg & Ptg Mills 16,000/- 3 M/s. Rajlaxmi Prints Pvt Ltd. 2,82,000'- 4 M/s. Suntex Fabrics Pvt Ltd. 2,38,000/- 5 M/s. Varun Dyg & Ptg Mills 70,001- 1.2 Appellants at Sr. Nos 1, 3, 6, 8, 15, 18, 19, 20, 23 and 25 are processors of MMF and assessee under the Central Excise and duty has been determined and demanded from them on the grounds that the value of Gray fabrics, supplied to them by the Traders, the other appellants were lower than it ought to have been. Consequently the Nangalia Group of Companies at sr. nos 5, 7, 8, 11, 12 and 13, listed supra and others had knowingly aided and abetted in this undervaluation consequently duty and penalties have bee....
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....e the period under the proviso to Section 11A(1) cannot be invoked for and demands for the period 1997-98 to 15-12-1998 by SCN dated 22-5-1999 cannot be invoked. The business dealings of the processors was with 130 to 150 clients (Traders) and the Nangalia a group was hardly providing business of 5 to 10% of the turn over there is no allegation of any special relationship with Nangalia a group or its Directors or a flow back from the alleged undervaluation. It was specifically pointed out that the panchanama dtd. 25-11-1998 nor the several statements as recorded of Nangalia Directors in any way indicate any specific preconcert or knowledge whish could be attributed to his clients (M/s. Suntex Fabrics Pvt. Ltd. M/s. Raj Laxmi Prints Pvt. Ltd....
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....departmental authorities were not clear about the status of such a declaration; That it was not sacrosanct, was not the belief to be entertained came to be settled by Larger Bench, this is also reinforced as they also did not take any action on RT12's and other declarations filed by the assessees within the normal period of demands under Section 11A(1) by questioning these declarations in this case. When the department, almost all over India, and the jurisdictional officers of the processors herein, did not suspect and found any thing amiss in the declarations as filed and returns of duty paid vide RT12s lodged every month, the processors not even alleged, to entertain any suspicion, except only M/s. Rupa Dyeing & Printing Mills Pvt. Ltd.; ....
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....ds and liabilities to confiscation therefore cannot be upheld. (c) the plea on behalf of Nangellia group, made by ld. Advocate Sh. Bulachandani, that they are manufacturer and weavers of fabrics and the prime quality of Gray fabrics were sold and the declarations made for the fabrics sent for processing by them was more than the costing thereof and being defective not of saleable standard the valuation of such of Gray cannot be of comparable fabrics being sold in the market as of prime quality has force. In any case, the valuation is being composed with market sale price of Gray fabrics, without any evidence of similar quality being on record. The traders were required to and gave the cost plus declaration. Mixing of lots and other commer....