2009 (3) TMI 744

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..... (hereinafter referred to as RSM), Central Excise officers unearthed certain incriminating documents such as party-wise ledger etc. at the premises of M/s. KTC who was a trader in cloth and yarn, and also broker for purchase/sale of yarn to M/s. RSM, M/s. Chola Spinning Mill (hereinafter referred to as CSM) and M/s. RSM. Evasion of Central Excise duty by M/s. CSM was noticed from the documents seized at M/s. KTC premises which were visited by Central Excise officers on 10-9-1997. The stocks and accounts of M/s. CSM were verified in the presence of Shri P. Sengodan and its Director Shri Kumarasamy and it was revealed that CSM had been adopting lesser value for the purpose of calculation of Central Excise Duty than the actual sale value, res....

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....the period 1-7-1997 to 11-8-1997 is 2,613/- bags whereas M/s. CSM actually cleared 2757 bags. The differential duty demand is for 5290 bags. There is no worksheet to show how this quantity has been arrived at. The loose sheets are stated to have been admitted by the Director of M/s. CSM to have been written by one Shri Subramaniam, who was the temporary employee. However, Subramaniam's statement has not been recorded. According to the Revenue, the sheets indicated the actual price of yarn sold by M/s. CSM and this price exactly matched the one recorded in the seized records of M/s. KTC. A few examples are set out for better understanding of the alleged evasion by CSM :- Invoice No. Qty. Amt. as per invoice Actual rate as in the ....