TaxTMI 
TaxTMI 
TaxTMI 
2014 (8) TMI 402
X X X X Extracts X X X X
X X X X Extracts X X X X
....of their director Sh. Arun Jain and also premises of M/s. Ambika Dharam Kanta, where the trucks carrying the finished goods cleared by PBPL and trucks carrying the raw material to PBPL were coming for weighment, were searched on 23.12.2009. During search of the factory premises when the stock taking of the finished product was conducted, it was found that stock of 202.955 MT of TMT bars valued at Rs. 52,35,630/- was in excess of the quantity recorded in the RG-1 Register and Sh. Arun Kumar Jain, manager and authorised signatory, who was present during stock-taking, could not give any explanation. Since the excess quantity of TMT bars represented several days' production which was not accounted in the RG-1 Register, the same are placed under seizure on reasonable belief that the same is liable to confiscation under Rule25(1) of the Central Excise Rule, 2002. 1.2 The stock taking of raw-material was also conducted and it was found that there was shortage of 250.04 MS ingots valued at Rs. 61,25,980/- vis-a-vis., the balance recorded in RG-23A Register and in respect of this shortage also Sh. Arun Kumar Jain could not give any satisfactory reply. Cenvat Credit involved on this qua....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ling TMT bars to M/s. Ratna Sales Co-operation, M/s. Khandewal Marketing, M/s. Jai Shree Steels, M/s. Shiv Iron Trading Company, M/s. Gotewala Steel etc. Sh. Banwari Lal Sharma the 4th appellant in this group of appeals is the Proprietor of M/s. Jai Shree Steel, Jaipur. During the subsequent enquiry, the documents recovered from Sh. Suresh Choudhary were found to be pertaining to MS ingots supplied by M/s. Amar Pratap Steel, Jaipur. 1.6 In course of follow up search being conducted at the premises of M/s. Hindustan Sales Corporation, Jaipur, a person named Sh. Dinesh Kumar visited the said premises and from him a pocket diary was recovered which was found to be containing several entries relating to cash transactions handled by him. Entries in the diaries included the cash payment made to and received from various iron and steel manufacturers and dealers. Some entries of cash transactions pertained to one Sh. Ghanshyamji of M/s. Sankhla Nagaur. Inquiry with Sh. Dinesh Sharma and Sh. Ghanshyamji and also with Sh. Ashok Jain of PBPL revealed that during period from 13.05.11 to 26.07.11, a total amount of Rs. 33,95,900/- had been paid by PBPL to M/s. Sankhla of Nagaur for supply of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Commissioner of Central Excise Jaipur vide order-in-original dt. 18.03.13 by which he:- (a) confirmed the duty demand of Rs. 1,98,10,357/- against appellant M/s. PBPL along with interest under the provisions of Section 11AB of Central Excise Act 1944 and imposed penalty of equal amount of PBPL under section 11AC ibid; and (b) imposed penalty of under Rule 26(1) of the Central Excise Rules, 2002 on other noticees including Sh. Arun Jain, Sh. Arun Kumar Singh and Sh. Banwali Lal Sharma. 1.9.1 The penalty imposed on Sh. Arun Jain, Sh. Arun Kumar Singh and Sh. Banwali Lal Sharma is Rs. 25,00,000/-, 20,00,000/- & 5,00,000/- respectively. 1.9.2 Penalty of Rs. 40,000/- and 7,50,000/- under Rule 26 was also imposed on Sh. Suresh Kumar Khandelwal, Manager of M/s. Gotewala Steel and Sh. Gurmukh Singh of M/s. Amar Pratap (p) Ltd, but they are not in appeal. 1.10 Against this order of the Commissioner, these appeals have been filed by PBPL, its Director Sh. Arun Jain, Sh. Arun Kumar Singh and Sh. Banwali Lal Sharm along with stay applications. 2. Heard both the sides in respect of stay application. 3. Sh. Jatin Mahajan, Advocate, the learned counse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the statement of the persons from whom the documents had been recovered, have been relied upon, that the appellant have strong prima facie case in their favour and hence the amount of Rs. 24 Lakhs already deposited may be considered sufficient for hearing of these appeals. It was also pleaded that seized goods along with seized cash of Rs. 22.5 lakhs are still with the Department and these goods and cash together with 24 lakhs already deposited are sufficient to safeguard the interests of the Revenue. 4. Ms. Shweta Bector, the learned DR, opposed the stay applications and reiterating the findings of the Commissioner in the impugned order pleaded that the duty demand of Rs. 1,98,10,357/- against the appellant company -PBPL, is not only based on the information retrieved from the CPUs and other incriminating documents recovered from the factory premises of the appellant company and residential premises of Sh. Arun Jain, Director, but also on the documents recovered in course of follow up searches on the basis of that information, including search at the premises of M/s. Jai Ambika Dharam Kanta and of Sh. Suresh Choudhary, that Sh. Suresh Choudhary has accepted the documents recovere....