2010 (9) TMI 373

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....above named. By the said orders penalty under Rule 209A of the Central Excise Rules, 1944 (for brevities sake hereinafter called as "the said Rules") imposed upon the Respondents in each of the Appeals has been set aside. 2. Since the questions of law raised in both the above Appeals are overlapping and common, the above Appeals are heard together. The questions of law are reproduced herein under :- Appeal No. 53 of 2005 : "Whether the CESTAT was right in law by allowing the appeal on basis of part of the evidence without taking into consideration and ignoring the other vital evidences leading to prove the departmental contention, the circumstantial evidence leading to direct aiding and abetting in the evasion of central excis....

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.... confiscation, penalty and interest in respect of the goods in question. The Respondents above named were made co-noticees, for aiding, and abetting the said M/s. Lalit Products in contravention of the payment of the said excise duty, a proposal for penalty under Rule 209A of the said Rules was also made. In the light of the issues raised in above Appeals it would be relevant to note that the following were co-noticees along with the said M/s. Lalit Products :- 1       Shri Lalit Dehlahra 2       M/s. Mahendra Trading Co. 3       M/s. Padma Metal Corporation 4       M/s. Hi-tech Electronics 5  &nbs....

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....tors. Statement of Shri Bharat V. Oza of M/s. Ranjit Freight and Shri M.A. Khatri, partner in M/s. Goodwill Electricals recorded under sec. 14 of Central Excise Act, 1944 are available on record. From their statements, it is proved that M/s. Lalit Products have manufactured and clandestinely cleared ' Cellonex' brand mixer grinders under L.R. No. 1719 dated 27-5-1976, 1879 dated 3-6-97 and under bill/invoice no. 4/97-98 dt. 5-6-97 (out of which only one transaction under Bill no. 4/97-98 dt 6. 5-6-97 is reflected in their records) as detailed in the Annexure to the show cause notice under the cover of kaccha chits, loose papers, through the above transporters using abbreviated name of the consignor and consignee. Therefore, the value of rem....

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....Rules as proposed in the show cause notice." 5. Being aggrieved by the said order in original the Respondents herein as well as the said Lalit Products preferred an appeal before the First Appellate Authority. The said appeal was rejected by the Tribunal vide order dated 16-8-2001 on account non-compliance of pre-deposit in terms of Section 35F. It appears that the department proceeded for recovery of the said amount of duty. The Respondents herein thereafter filed a further Appeal before the Customs Excise & Service Tax Appellate Tribunal, West Zone Bench, Mumbai being Appeal No. E/1925/2000. The said Appeals came to be allowed by the CESTAT by its orders, both dated 12-8-2004. The gist of the reasoning of the CESTAT was that the R....