TaxTMI 
TaxTMI 
2011 (2) TMI 919
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....e appeals were heard for final disposal. 2. The facts leading to filing of these appeals and stay applications are, in brief, as under:- 2.1 The Appellant Company whose Managing Director is Shri Hari Om Goyal manufactures Auto parts of KAMEI brand, which are chargeable to central excise duty. Their manufacturing activity is confined to procuring unbranded parts from various sources, testing of the same, affixing of their brand name and packing. During the period of dispute i.e. 2006-2007 and 2007-2008, as per the provisions of Section 2(f)(iii) of the Central Excise Act, 1944, these activities of packing, labelling and affixing of brand name on auto parts amounted to manufacture. The Appellant, claiming that they are eli....
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.... Rs.12,73,895/- and two computer CPUs were seized. 2.2 Statement of Shri Manish Gupta, Accountant of the Appellant Company was recorded on 24.08.2007 wherein he stated that he is working as accountant for this company for the last two years, that the Appellant Company procures unbranded auto parts from various suppliers, tests the same, and markets them after affixing the brand name KAMEI and packing, that unbranded parts in loose condition are received with bills as well as without bills, that the records of receipt of auto parts received with bills are maintained in the company s books of accounts maintained on computer installed in the office, that the record of auto parts received without bills is not reflected in the Company ....
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....nts of Shri Hari Om Goyal were recorded on 10.09.07 and 17.09.07 wherein he admitted that the printouts from USB storage device shown to him pertains to sales during 1.8.07 to 16.08.07 which is Rs.74,04,398/-. 2.3 The USB storage device resumed on 24.08.2007 was further examined by investigating officers in presence of two panch witnesses with the help of computer experts and also in presence of Shri Hari Om Goyal. As a result of examination, some more hidden/deleted files were located and their printouts were taken. 2.4 Premises of M/s. Friends Sales Corporation, 188/A-1, Basra Bazar, Kashmeri Gate, Delhi-6, a buyer of auto parts from the Appellant Company, were searched on 4.3.2008 and some unaccounted KAMEI brand auto....
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.... Friends Sales Corporation; (e) confiscating of cash of Rs.5,00,000/- seized from the factory premises of Appellant company; and (f) imposition of penalty under Rule 26 of Central Excise Rules, 2002 on Shri Hari Om Goyal. 2.6 The above show cause notice was adjudicated by Commissioner of Central Excise, Delhi-I vide Order-in-Original No.64/PVJ/CCE/09 dated 30.12.2009 by which (a) duty demand of Rs.30,91,564/- for 2006-2007 period and Rs.25,07,106/- for 1.4.07 to 15.3.08 period was confirmed under proviso to Section 11 A(1) along with interest on it under Section 11 AB and an amount of Rs.s5 Lakhs already paid was appropriated towards this demand; (b) penalty of Rs.55,98,670/- was imposed on ....
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.... statutory records of the Appellant and the total clearances of the Appellant were within the SSI exemption limit, that request for 2 to 3 day s time for submission of documentary evidence is not dilatory tactics, that the Commissioner s order is, therefore, in gross violation of the principles of natural justice, that the goods seized from the Appellant s factory and other premises were not liable for confiscation, that no penalty is imposable either on the Appellant company or on Shri Hari Om Goyal, and that in view of this, the impugned order is not correct. 4.2 Shri R.K. Verma, the learned Departmental Representative defended the impugned order by reiterating the Commissioner s findings. 4.3 After hearing both the si....