TaxTMI 
TaxTMI 
2008 (10) TMI 448
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....cation of show-cause notice dated 31-3-2003. M/s. Sri Kanaka Durga Castings (P) Ltd. (SKDC, for short), appellants in Appeal No. C/267/2008, are the most aggrieved inasmuch as a demand of differential duty of over Rs. 85 lakhs under Section 28(2) of the Customs Act and equal amount of penalty under Section 114A of the Act have been clamped on them. The CMD of the company, appellant in Appeal No. C/268/2008, carries a penalty of Rs. 50 lakhs imposed under Section 112(a) of the Act, and so does the Chief Executive Officer of the company, appellant in Appeal No. C/269/2008. There are also penalties on three high sea sellers, appellants in Appeal Nos. C/231, 232 & 252/2008. There are similar penalties on three CHAs also, appellants in Appeal No....
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....eriod granted for the purpose. Consequently investigations were launched by the DRL The investigators visited the factory on 5-9-2002. They found a stock of over 1800 MTs of HMS in the factory yard, which was noted in a panchanama. The statutory records like RG-23 Part-I Register, job work challans etc. were seized. A host of other records were also recovered, which were also noted in the panchanama. Statements were recorded from the functionaries of M/s. SKDC as also from high sea sellers (from whom the scrap was purchased by the importer), Customs House Agents, transporters etc. under Section 108 of the Customs Act. From the results of investigations, it appeared to the DRI that M/s. SKDC had diverted the entire imported material in and a....
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....ty, M/s. SKDC pointed out that four more witnesses remained to be cross-examined in terms of the permission given by its predecessor. They requested for an opportunity to cross-examine these persons, by way of a letter dated 20-11-2007. However, this permission was not granted by the Commissioner, who recorded the request made by M/s. SKDC in his 'record of personal hearing' dated 28-11-2007. The learned Commissioner, however, granted the parties (barring S/Shri Deepak Madan and Umesh Madan) an opportunity of being heard. Subsequently, he passed the impugned order. 3. After hearing both sides and considering their submissions, we are convinced that the learned Commissioner who passed the impugned order has not applied his mind to th....
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.... as, according to M/s. SKDC, many of those documents conclusively showed that CENVAT credit of CVD had been taken on the imported material, that 4,329 MTs of Ingots were manufactured out of 4,441 MTs of HMS during the period Dec.'01 to Mar.'03, that a quantity of 1,668 MTs of scrap was transported through M/s. Andhra - Tamil Nadu Transports across the inter-State border. It is the main grievance of M/s. SKDC that these evidentiary materials were not even examined by the adjudicating authority. The price for the import of scrap had been found to have been paid to the high sea sellers by M/s. SKDC through DDs/cheques, but this fact was ignored by the Commissioner - one of the grievances raised by the high sea sellers before us. In the case of....