TaxTMI 
TaxTMI 
2014 (4) TMI 653
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.... iron from iron ore. Shri R.K. Agrawal, is the Director of the appellant company. While iron ore is the principal raw material for manufacture of sponge iron, other raw material used is coal and dolomite. On receipt of an intelligence that the appellant are procuring illegally mined iron ore from various sources and are receiving the same without accountal in their records and clearing the sponge iron manufactured out of such unaccounted iron ore without payment of duty, the jurisdictional Central Excise authorities started inquiries in this regard. It was found that the iron ore procured by the appellant was being transported through railways up to the nearest railway siding of Uslapur at Bilaspur and from there, the iron ore was being tra....
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....Markam, Accountant of M/s Gyan Singh, were also recorded on 22/06/07 and 16/07/07 after being questioned about various documents recovered from the office premises of M/s Gyan Singh. In course of investigation it was found that certain RRs had been endorsed by the appellant company to M/s Jai Ambey Minerals, but on inquiry this entity was found to be non-existent. On inquiry with Shri Dilip Kumar Markam, he disclosed that the iron ore covered under RRs endorsed to M/s Jai Ambey Minerals had been transported to the factory premises of the appellant company. 1.2 On the basis of the inquiry, the Investigating Officers found that there is difference of 43,198.92 M.T. of iron ore between the quantity which the appellant company is supposed to h....
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.... company under Section 11AC of Central Excise Act and Section 78 of Finance Act, 1994 ; (c) penalty of Rs. 200/- per day under Section 76 of the Finance Act, 1994 was also imposed on the appellant company, besides penalty of Rs. 5,000/- on them under Section 77 of the Finance Act, 1994 ; and (d) penalty of Rs. 1,50,00,000/- was imposed on Shri R.K. Agrawal under Rule 26 of the Central Excise Rules, 2002. No penalty was imposed on M/s Gyan Singh. 1.4 Against the above order of the Commissioner, these appeals alongwith stay applications have been filed. 2. Heard both the sides. 3. Though these matters were listed for hearing of the stay applications only, after hearing the same for some time, the Bench was of the view that the matters ca....
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....overed under the RRs endorsed to M/s Jai Ambey Minerals had been received in the premises of the appellant company, is based on the statement of Shri Dilip Kumar Markam and while his cross examination had been requested, the same had not been allowed, that besides railway receipts, a number of other relied upon documents have not been supplied, that there is thus denial of natural justice to the appellant and, hence, the impugned order is not sustainable. 5. Ms. S. Bector, the learned DR, defended the impugned orders by reiterating the findings of the Commissioner and emphasized that the quantity of the iron ore actually received by the appellant company had been determined on the basis of the RRs procured from the railways, that in the RR....
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....by the appellant out of unaccounted iron ore received by them. The allegation of receipt of unaccounted iron ore is based on the difference between the iron ore accounted for by the appellant company in their records and the receipt of iron ore on the basis of the RRs in the name of the appellant company or endorsed by others to them. The appellants plea is that in respect of a number of RRs which are in their name for the reason that the iron ore had been transported in the rates assigned to them, the iron has not been received by them but has been received by others against the endorsements on the RRs by them and these facts can be clarified only when the RRs are made available to them but the same have not been made available by the dep....