TaxTMI 
TaxTMI 
2009 (9) TMI 843
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....nvestigations, show cause notices were issued proposing clubbing of clearances by seven firms/companies controlled by the said brothers and also alleging clandestine removal by M/s. National Conduit Pipes. Commissioner vide her order while dropping the demand on the issue of clubbing of clearances by various units. However, she held the allegation of clandestine removal ERW pipes during the period from 31-8-2000 to 18-10-2000 as proved and confirmed demand of Rs. 17,79,094/- against M/s. National Conduit Pipes along with interest and imposed equal penalty under 11AC and also imposed penalty of Rs. One lakh on Shri Shayam Lal, the other appellant, who is one of the partners of the appellant firm. 4. Learned Advocate for the appellants submits the following : (i) Demand has been confirmed on the basis of 62 invoices found entered in the Information Collection Centre of Punjab Government. Only in the case of 36 invoices, the signatures of appellant's truck drivers on the ST XX IVA form are available; in respect of other invoices the signatures of truck drivers are not available; no clearances were effected on those invoices by the appellant-firm; the drivers appear t....
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.... Punjab and therefore, the said documents are admissible as evidence and the reliable. Further printout of the invoices of M/s. NCP for the period after 30-9-2000, were taken out from the computer (which was seized from the premises of M/s. NCP on 15-11-2000 in the presence of Sh. Sham Lal on 28-6-2001/23-7-2001. On cross checking with the invoices for the corresponding periods found in statutory records, it was noticed that the computer printout of Invoice No. 237 dated 27-10-2000 shows Central Excise duty element as Rs. 62907/-, whereas the same is accounted for Rs. 4000/- (with Central Excise duty element as Rs. 560/-) as cash sale on 30-10-2000 in their statutory records of M/s. NCP. (b) Perusal of Invoice No. 190 dated 24-9-2000 for 14.530 MT of pipes recorded at ICC when compared with the invoice which has been recorded in their records, it is found to be the invoice for 0.100 MT of pipes valued at Rs. 1,635/-but the date, the time of preparation and the time of removal shown on both of these invoices are same. (c) Scrutiny of ledgers of different manufacturing units of Sh. Sham Lal and Sh. Ramesh Kumar revealed that they had shown accounted sale of ERW pipe....
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....ors, such as computer generated parallel invoices found with ICCs, preparation of GR/Bifties, by the employees and admitted by them, mentioning trucks belonging to Shri Sham Lal and Shri Ramesh Kumar of their family members etc. quantity alleged to had been cleared clandestinely could have been achieved by working more than 8 hours. There is nothing on records that unit had been working for 8 hours only. 6.1 We have carefully considered the submissions from both sides. The Department relies on certain information and documents collected the Information Collection Centres maintained by the Punjab Government agencies in respect of movement of goods into and out of Punjab for concluding that the appellant firm has clandestinely removed goods from their factory. Specifically, it has been held that consignments cleared from the appellant firm covered by 62 invoices valued Rs. 1,28,98,430/- which are reflected in the data maintained by information centres are not found entered in the statutory records as clearances. The said data contained the name of appellant as the consignor, and the details like the truck numbers. Further, copies of computer generated invoices and copies of t....
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....ers. 6. That in order to avoid detection by my employers, I used to take some blank printed signed computer invoices of M/s. National Conduit Pipes, National Steels get those filled free outside (i.e. Computer shops) and submit those at the information collection centres of the Punjab Govt. 7. That I did not realize that my action could harm my employers & others. I regret my action." 6.4 The affidavits of other deponents are identical except for the name, father's name and the place of residence. 6.5 The affidavits of the drivers, as already noted, are identically worded. All of them uniformly admit to transport of goods without bills from other parties with a view to earn money without the knowledge of their employers; they also submit that they have used blank printed signed computer invoices of National Conduct Pipes and got these filled free outside. They have not indicated crucial details such as who were the suppliers of such goods which were transported using those invoices; they have also not identified any of the consignees. All these affidavits appear to be solicited affidavits and may not deserve to be given credence especially in the l....
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....nd the same was declined. 8. It is noticed that the invoices recovered from the ICC and the invoices generated in the computers belonging to the appellants are identical in several respects. Invoices received from ICCs and that accounted for in the statutory records of NCP are having same format, same Serial No. and even the time of preparation of both the invoices is same. While attempt was initially made by them saying that said invoices do not belong to them, latter it was admitted and was sought to be explained as if all the drivers had access to the computer section in the appellant's premises and that they misused the same for private profit. This appears to be an after-thought. 9. It is noticed that the invoices with to be identical numbers have been issued for small quantities for sale by cash. Under these circumstances, the need for engaging a lorry for transport of such a small quantity cannot be appreciated. The submission that the 7 of their drivers might have taken the vehicle without their knowledge and used them for transport of others' goods without the knowledge of the officers of the appellant lacks credibility. The submission by the Secretary of t....