2014 (8) TMI 779

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....h interest Penalty imposed (i)   E/49/2008   Kashi Silk Mills   Rs.17,65,744/- Rs.17,65,744/- (ii)   E/50/2008   Dhara Fabrics   Nil Rs. 6,700/- (iii)   E/51/2008   R.K. Textiles   Nil Rs. 8,300/- (iv)   E/52/2008   Mahadev Textiles   Nil Rs. 4,000/- (v)   E/53/2008 Rangoli Textiles   Nil Rs. 16,000/- 2. Brief facts of the case are that the main appellant M/s. Kashi Silk Mills are the manufacturers of man-made fabrics and were visited by the officers of Central Excise, Commissionerate Surat-1 on 12.09.2002. During the course of preventive checks; in the ....

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....pellant, along with interest, and equivalent penalty was also imposed upon the main appellant under Section 11AC of the Central Excise Act, 1944 read with Rule 25 of the Central Excise Rules, 2002. An amount of Rs. 3,80,597/- already paid by the main appellant was also appropriated against the confirmed demand. Penalties were also imposed upon the merchant manufacturers by the adjudicating authority under Rule 26 of the Central Excise Rules, 2002. Out of the persons upon whom penalties were imposed and demands confirmed only 10 merchant manufacturers and the main appellant filed appeals before Commissioner (Appeals). Commissioner (Appeals) vide order dated 24.10.2007 rejected the appeals filed by all the 11 appellants, including the main ap....

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....enalty should be given to the appellant. 4. So far as the imposition of penalty on other appellants is concerned, it was argued that Shri Sujesh Babubhai Patel, proprietor of the main appellant has nowhere given the names and addresses of the merchant manufacturers from whom the grey fabrics were acquired and to whom the same were sent after processing. It was his case that penalties should not be imposed upon the other appellants/ merchant manufacturers. 5. Shri S.K. Mall, (AR) appeared on behalf of the Revenue. It was his case that clandestine manufacture and clearance of the goods have clearly been established from the documents recovered during the course of search and corroborative statements of the authorised signatory of the ma....

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....aced out such merchant manufacturers. During the statements recorded all these merchant manufacturers admitted to have got goods manufactured/ received from the main appellant without payment of Central Excise duty. Calculation of duty demand on the clandestine removal of the goods has been calculated by the Revenue on the basis of details made available in the private accounts maintained by the main appellant and the job charges recovered. The stock taking of grey fabrics and semi-finished/ finished fabrics lying in the stock of the main appellant during the course of search also show difference in the stock. Proprietor and authorised signatory of the main appellant agreed to the correctness of the Panchnama, duty evasion calculation and c....