TaxTMI 
TaxTMI 
2014 (2) TMI 818
X X X X Extracts X X X X
X X X X Extracts X X X X
....imposed on the Applicant No.(1); penalty of Rs.5.00 lakh imposed on the Applicant No.(2); and penalty of Rs.20.00 lakh imposed on the Applicant No.(3). The impugned Order is passed by the ld. Adjudicating Commissioner. 3. At the outset, ld. Consultant for the Applicants submitted that the Officers of DGCEI, Kolkata Zonal Unit, searched the factory premises of M/s. Ma Vaishnavi Ispat Udyog Pvt. Ltd. and the residential premises of its Director, Shri Shyam Babu Gupta and recovered certain private documents like Production Log Sheet Reports, Daily Report, Note Books, Kacha Delivery Challans etc. showing unaccounted receipts of raw materials i.e. sponge iron, pig iron, M.S. scrap etc. and clandestine clearance of M.S. ingots in respect of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at Udyog Pvt. Ltd. was to purchase the raw materials in the name of the Applicant No.(1) (formerly known as M/s. Daudee Steels Pvt. Ltd.). Accordingly, the Applicant No.(1) would take credit on such purchases. The production and furnace maintenance were to be done by the persons of M/s. Ma Vaishnavi Ispat Udyog Pvt. Ltd. After production of the finished goods, M/s. Daudee Steels Pvt. Ltd. were supposed to record such production in their Daily Stock Account Register and clearance of the finished goods under cover of their invoices. The duty so paid by M/s. Daudee Steels Pvt. Ltd., was reimbursed by M/s. Ma Vaishnavi Ispat Udyog Pvt. Ltd. The responsibility of maintenance of records and documents was on M/s. Daudee Steels Pvt. Ltd. It is the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e of their furnace w.e.f.01.02.2008 to 30.06.2008 on lease basis, while the responsibility of M/s. Ma Vaishnavi Ispat Udyog Pvt. Ltd. was to manage the purchase of raw materials in the name of the Applicant No.(1) and to manage the production of M.S. ingots in their furnace. As per their understanding, M/s. Daudee Steels Pvt. Ltd. used to take credit in relation to purchase of raw materials so made by them in their name. The maintenance of all the statutory records and documents, payment of electricity bills, payment of central excise duty and VAT at the time of clearance of finished goods were their responsibilities. Later on, the electricity expenses, duty paid from PLA and amount of VAT paid, were reimbursed by the Applicant No.(1) from ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed the lease at the end of 2008. We find from the above, that both the Directors have made an attempt to shift the duty liability on each other. We find that in the present case, the Applicant No.(1) has taken the Central Excise Registration for manufacture of excisable goods. They are also furnishing various returns to the Department in respect of excisable goods manufactured from their said registered premises. CENVAT Credit was also availed by them. We also find that on 12.06.2008, the Officers of Bolpur Headquarters (Anti-Evasion) took physical stock in the factory of the Applicant No.(1) and detected shortage of 1036.427 MT of M.S. Ingots. Shri Ashok admitted the shortage and clarified that some clearances were made by them without pro....