TaxTMI 
TaxTMI 
2010 (1) TMI 634
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....ertain documents were seized. There was also seizure of unaccounted products, which has been dealt with in a separate show cause notice. During the investigation statements of the transporters and authorized representative of the Director were recorded. The Authorized representative's statement was recorded since the Director did not appear before the officers even though 13 summons were issued to him. 2. Thereafter, proceedings were initiated by issuing show cause notices and proceedings have resulted in confirmation of duty demand of Rs. 4,04,961/-. Penalty of equal amount has also been imposed under Section 11AC of Central Excise Act, 1944 (the Act) and interest has also been demanded. 3. Learned advocate appearing for th....
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....rought out to show that appellants had received the amount. He submits that there is a possibility of overlap of goods reflected in worksheet No. 1 with worksheet No. 2. 5. As regards worksheet No. 3, the demand is based on Lorry Receipts (LRs) in respect of 11 consignments. He submits that goods covered by these 11 LRs were accounted under two invoice No. 200 dated 19-1-1999 and No. 201 dated 20-1-1999. This claim has been rejected on the ground that in the LRs seized the date column is left blank in the invoices even though there is a column to indicate LR No. in the invoices. It was also observed that the seized LRs are the office copies which are supposed to be with the transporters but were seized from the appellants. Further, ....
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....at dates in the challans was different can be explained. Further, he has also observed that dates would have been left blank with mala fide intention. However, we find that claim of the appellant is not only that the challans did not have date and date of 28-12-1998 has been added by someone else but also that invoices from number 186 to 189 of 4-1-1999 contain details of challans as well as carton numbers. For example, invoice no. 186 dated 4-1-1999 shows challan numbers 508 to 518, the date of challans is also shown as 4-1-1999. However, number and description of packages serial number 6399 to 6462 and total quantity is shown as 3148.56 Kgs. It is seen that challans from 508 to 518 covered the serial Nos. of the cartons from 6399 to 6462 ....
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....ffer any explanation as to the existence of parallel set of invoices. The Central Excise assessee is required to issue invoices as per the provisions of Rules and therefore, the burden to show as to how the parallel set of invoice book was available and parallel invoices falls on the appellants. In view of the clear admission by the authorized signatory of the unit and existence of the parallel set of invoices, the demand confirmed based on the worksheet-2 has to be upheld. 9. The third demand is in respect of 11 consignments of yarn is based on Lorry Receipts (LRs) seized from the premises corresponding to which no duty paid invoices were found. Appellants submitted that these goods were accounted for in the two invoices No. 200 da....
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....ave been made as regards the invoices covering LRs and challans. There are omissions and commissions in the LRs such as non existence of date, overwriting of numbers. But can we consider it sufficient for confirming duty demand then the answer is negative. The department should have investigated further. Therefore, demand for duty covered under worksheet-3 also is to be set-aside. In the result, total duty demand that is to be upheld comes to Rs. 1,45,671/- covered by worksheet-2. 10. In view of the fact that goods have been cleared under the parallel set of invoice and parallel set of invoices were recovered during the search operations in the appellant's factory and in view of the admission statement. It is clear that demand is to....