TaxTMI 
TaxTMI 
2014 (2) TMI 325
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....tral Excise duty by way of using two pouch packing machines in the manufacturing (packing) of gutkha; the party had only filed declaration regarding installation of one nos. of FORM FILL & SEAL MACHINE i.e. FFS machine in their factory premises in the month of July, 2008 and further they had not filed any declaration regarding installation of FFS machine in their factory premises for the subsequent period. Consequently, a team of the officers of DGCEI, alongwith officers of Central Excise, Kanpur searched the aforesaid premises of the appellants and other related premises on 29.10.2009. The search warrant was executed upon Shri Ashish Gupta, Supervisor of M/s.Radhey Shyam & Sons and search was conducted in his presence as Shri Radhey Shyam Gupta, who looked after the work of the factory, was out of station. During search at the premises situated at 130/1309, Bagahi Kanpur, it was found that the said premises consisted of a big compound having various separate doors/shutters (approx.18-20) at is periphery. The shutters facing the main road were shops, selling various miscellaneous commodities, while the other doors, facing the side lanes, were leading to independent halls. 3. On be....
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.... with panchnama proceedings. He also admitted that his firm engaged in the manufacture in production of 'VIKAS' brand gutkha; there were two paddle sealing machines in his registered premises; Gutkha mix masala was manually filled in pouches an sealed with the aid of these paddle sealing machines. He has not declared to the department about two pouch packing machines (FFS) which were found installed in the premises near their registered premises, wherein laminated rolls of 'VIKAS' brand gutkha were loaded/mounted on 29.10.2009. He agreed with contents of panchnama proceedings conducted on 29.10.2009. He also admitted that the photographs which have been shown to him pertained to undeclared premises where 'VIKAS' brand gutkha was manufactured on those two machines and those machines were not declared to the department. 7. Further it was seen that in the building, where M/s Radhey Shyam & Sons were having their registered premises, two other companies were also situated. Their statements were recorded namely, M/s.Anandeshwar Enterprises and M/s.Gaurav Enterprises, both housed as 130/1309, Bagahi, Kanpur. Shri Har Narayan Gupta, partner of M/s. Anandeshwar Enterprises and Shri Sharad....
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...., wherein a statement of Shri Dilip Kumar Malu, Manager of M/s.Aman Marketing was recorded on 13.11.2009, wherein he stated that he was well acquainted with the manufacturers of 'VIKAS' brand gutkha for the last four years, his firm had been selling tobacco to them on regular basis. He also confirmed that the sale of tobacco was shown as cash sale without mentioning the name of purchaser. 11. Based on facts and overall evidence as depicted above it was evident that they were engaged in the manufacture of VIKAS brand gutkha for which packaging material and tobacco were being procured on cash basis without issue of any invoice. It has also come out that they have been using FFS machines from March, 2008 onwards. Existence of (two) machines in the unregistered premises situated near their registered premises also stood proved. 12. Further based on reference to the provisions of Rule 17 (2) Pan Masala Packing Machines (Capacity Determination and Collection of Duty), Rules, 2008 where deeming provision has been built holding that such machine shall be deemed to have been in operation since 1.7.2008 and such machines shall be construed as operating packing machines for the purposes of ....
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.... M/s.Radhey Shyam & Sons who are manufacturers of VIKAS brand gutkha. Shri Ashish Gupta, Supervisor of M/s.Radhey Shyam & Sons admitted in his statement on 29.10.2009 and confirmed two pouch packing machines were installed in the unauthorized premises where M/s.Radhey Shyam & Sons were manufacturing of VIKAS brand gutkha. 17. Statement of Shri Rajeev Gupta, proprietor of M/s.Radhey Shyam & Sons was also recorded on 29.10.2009 wherein he admitted the proceedings undertaken by the visiting officers and confirmed that their firm were engaged in the production of VIKAS brand gutkha and there were two peddle sealing machines in his registered premises. He also stated that he had not declared two pouch packing machine installed in their unregistered premises where lamination rolls of VIKAS brand gutkha were found loaded/mounted on 29.10.2009. He also submitted that due to commercial constraint, existences of these machines were not declared as these machines were installed in undeclared premises. It was also on record that Shri Ashish Gupta was the person present when two FFS machines were found installed in two different halls in fully operational condition. Shri Ashish Gupta confirmed....