TaxTMI 
TaxTMI 
2005 (7) TMI 546
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....har, Orissa - 758 013, (hereinafter referred to as M/s MSPSIPL/main applicant in this order), and (2) Shri Pradip Kumar Dey, C/o. MSP Sponge Iron Pvt. Ltd., Haldiaguna, PO-Goberdhan, Dist. Keonjhar, Orissa - 758 013; (3) Shri Sanjay Kumar Sahoo, C/o. MSP Sponge Iron Pvt. Ltd., Haldiaguna, PO-Goberdhan, Dist. Keonjhar, Orissa - 758 013 are disposed off. All these Applications were admitted under Admission Order No. A-15/CEX/2005 - SC (KOL), dt. 30-5-2005. 2. Acting upon an intelligence, on 29-7-2003, Officers of the DGCEI, EZU, Kolkata conducted simultaneous searches at the office and factory premises of the above firm. Based on the evidence collected by the DGCEI from seized documents and statements of concerned persons, a Show Caus....
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....unaccounted quantity of 929.535 MT of Sponge Iron on which duty has been demanded. (iii) The applicant paid Rs. 10,00,000/- before issuance of the SCN. 4. Report under Section 32E of the C.E. Act, 1944 was called for, which was received on 11-04-2005 from the Addl. Director, DGCEI, Kolkata. In the said report it was stated as follows : (i) The stand of the assessee that the demand amounting to Rs. 47,272/- on account of shortage of 59.090 MT of Sponge Iron will amount to double taxation was not acceptable as no evidence supporting their claim could be shown by the assessee at the time of investigation, and even in their application made under Section 32E of the Central Excise Act. (ii) &nb....
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.... appropriate an amount of Rs. 8,22,838/- from the said deposit of Rs.10 lacs within 15 days from the date of receipt of the Admission Order and report compliance within a week thereafter. It was mentioned in the said order that if no communication in this regard was received within the aforesaid period from the respondent Commissioner, it would be deemed that this amount has been duly appropriated by him towards C.E. duty. 7. The Settlement Commission, having thus acquired exclusive jurisdiction in terms of Section 32I of the C.E., Act, 1944, requisitioned relevant records/documents. In reply, the Jt. Director, DGCEI, Rourkela, acting on behalf of the Commissioner of C.E., Bhubaneswar-II Committee informed, under his letter DGCEI F.....
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....p; In reply to queries from the Bench, the ld. Advocate submitted that before or after the period in dispute, the applicants did not indulge in such activities and assured that no such activities would occur in future. They had to resort to evasion for a short period of time, mainly to survive in a competitive market but they did not collect any amount as duty from their buyers and thus did not derive any financial accommodation at the cost of Govt. Revenue. In reply to further query, he submitted that the Director of the Company sits far away from the factory, and thus not being directly involved in day-to-day activity at the factory, was not personally responsible for the evasion of duty. (v) The ld. Advocate re....
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.... the applicants, co-operated fully with the Commission by making true and full disclosure of their duty liability, accepted and agreed to adjust the entire amount of duty out of the amount deposited before issue of the notice. (c) We therefore, settle the case in terms of Section 32F of the Central Excise Act, 1944 under the following terms and conditions - Duty of Central Excise - The amount of deposit of Rs. 10,00,000/- should be adjusted as follows - (i) Rs. 8,22,838/- was directed to be adjusted from the deposit of 10,00,000/- under Admission Order No. A-15/CEX/2005-SC (KOL), dt. 30-05-2005. (ii) Rs. 1,77,162/- is lying with the respondent Commissioner of C.E., Bhubaneswar....