TaxTMI 
TaxTMI 
2014 (5) TMI 293
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....f which Shri Rajan Ishwar Jariwala was Karta; his statement was recorded on that day by the authorities. In the said statement, Shri Rajan Ishwar Jariwala accepted that the packing register and the records maintained at M/s. Sunira Traders, were in respect of the processed fabrics which were received from Shri Krishna Screen Print Art. The officers recovered documents under a Panchnama and also conducted detailed investigation and recorded various statements of the persons including Shri Rajan Ishwar Jariwala. On the conclusion of investigation, the authorities issued a show cause notice to Shri Krishna Screen Print Art the main appellant herein for demand of duty, interest thereof, for imposing of penalty; also show cause notice was issued to Shri Rajan Ishwar Jariwala and M/s. Shri Govardhan Textiles for imposition of penalty, on an allegation that Shri Krishna Screen Print Art had processed fabrics on machine with the aid of power sent it for folding to M/s. Sunira Traders and subsequently cleared the said folded fabrics in the name of M/s. Shri Govardhan Textiles, in order to evade central excise duty, as Shri Krishna Screen Print Art is not eligible to avail the benefit of exe....
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....ned at the premises of M/s. Sunira Traders and not at main appellant's premises. It is the submission that without independent corroboration and in the absence of any direct evidence showing clandestine removal, demand cannot be sustained. It is also submission that there is not a single evidence recovered from the premises of Shri Krishna Screen Print Art in as much as the officers visit which was made at Shri Krishna Screen Print Art, did not throw out any mismatch in the stocks of either finished goods or grey fabrics. In support of there being no independent corroboration, he would rely upon the judgment of the Hon'ble High Court of Gujarat in the case of Vishwa Traders as reported at 2011 (266) E.L.T. 45 and in the case of Tejal Dye Stuff as reported at 2013 (287) E.L.T. 243. It is also his submission that even though the Department recorded statements of the customers, none of them were inculpatry. It is also his submission that during the cross-examination of the persons who were the purchasers of goods, the individuals confirmed that they had received only hand processed material which does not support the department's case. 3.2. It is his further submission that departm....
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....fabrics by hand which was exempted and was cut and folded by M/s. Sunira Traders. It is his submission that this contention is misplaced as the proprietor of M/s. Shri Govardhan Textiles and the address of the firm was residential address of Shri Rajan Ishwar Jariwala who is the proprietor of Shri Krishna Screen Print Art as well. It is his submission that the said fact of M/s. Shri Govardhan Textiles has no manufacturing or printing activity and function as a trader was admitted by Shri Rajan Ishwar Jariwala in statements dated 28.12.2004, 29.12.2004 and 18.01.2005. It is also his submission that Shri Rajan Ishwar Jariwala and Shri Narendra Solanki has accepted and admitted that the goods cleared from M/s. Sunira Traders were infact of Shri Krishna Screen Print Art. It is his submission that the copies of table charges paid by M/s. Shri Govardhan Textiles is totally incorrect is an after thought, as this fact was never recorded by Shri Rajan Ishwar Jariwala till they filed reply to the show cause notice; the said bills also did not appear to be genuine as the hand writing on the bills of different contractors is the same and no bill numbers are printed and few of bills have been p....
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....esign register and the packing register recovered from M/s. Sunira Traders match only 10% of the cases; it is his submission that this defence is incorrect as Mr. Solanki of M/s. Sunira Traders has categorically stated that the packing register maintained at the premises of M/s. Sunira Traders was in two sections and after submitting the same he drew our attention to entries in such registers. It is his submission that the point made by the Ld. Counsel as to no correlation between electricity consumption and manufacturing activities is also incorrect as the appellant has not produced any technical data to supplement their submissions as to electricity consumption for processing of the fabrics. It is his further submission that the appellant's claim that they did not have installed capacity manufactured such a huge quantity also cannot be judged by the production quantity shown in RG-1 register. It is his submission the reliance placed by the appellant on the expert opinion in the form of Chartered Engineer Certificate also is incorrect as the same was produced to the adjudicating authority only when they filed elaborate submissions in their defence and the certificate also is erron....
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....aws cited by both sides. 7. At the outset, it is recorded that there is no dispute as to the fact that Shri Rajan Ishwar Jariwala is the proprietor of Shri Krishna Screen Print Art and M/s. Shri Govardhan Textiles; he is also a Karta of HUF, Shri Rajan Ishwar Jariwala which owns M/s. Sunira Traders and M/s. Sunira Textiles. It is also undisputed that packing and folding register which was recovered at M/s. Sunira Traders was maintained by M/s. Sunira Traders and Panchanama was witnessed by Shri Rajan Ishwar Jariwala. 8. Based upon the above factual matrix, we now record our findings on the submissions made by both sides. 9. We are of the considered view that the appellants herein have not made out any case in their favour for more than one reason. 10. Firstly, we find that Shri Rajan Ishwar Jariwala and Shri Narendra Solanki have categorically recorded in their statements, before the authorities, that the packing and folding register which was recovered from the premises of M/s. Sunira Traders, was maintained at M/s. Sunira Traders and has two separate sections. The said packing registers had some pages allotted for the work undertaken on behalf of Shri Krishna Screen P....
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....wala had retracted his said statement and drew our attention to such affidavits. On perusal of such affidavits, we find that there are three affidavits which retract the statements and all the three affidavits do not indicate as to how the statements were recorded under duress. Be that as it may, we find that the said retractions as claimed by the Ld. Sr. Advocate, do not indicate that Shri Rajan Ishwar Jariwala had retracted the statement dt. 18.01.2005. On perusal of the said statement dt. 18.01.2005 and subsequent statements, it transpires that Shri Rajan Ishwar Jariwala had categorically stated that they clear the goods processed in Shri Krishna Screen Print Art and folded at M/s. Sunira Traders, in the name of M/s. Shri Govardhan Textiles. In our view, an admission made by the sole beneficiary of such an activity is itself enough to hold against the appellants. 12. Be that as it may, thirdly, we find that the appellant's Counsel was contending that M/s. Shri Govardhan Textiles has procured the materials and paid octroi, sales tax, etc. In our view, this defence will not carry the case of the appellant any further as Shri Rajan Ishwar Jariwala who is the sole proprietor of a....