TaxTMI 
TaxTMI 
2007 (9) TMI 95
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....ith Rule 173G of the Central Excise Rules, 1944 (for brevity, 'the Rules'). Accordingly, a penalty of Rs. 59,79,963/- has been imposed under Rule 273Q of the Rules read with Section 11AC of the Act. Further the assessee-appellant has been ordered to pay interest on the duty demanded, under the provisions of Section 11AB of the Act. 2. The assessee-appellant has claimed that the following substantial questions of law would arise for determination of this Court :- (i) Whether any demand or penalty could be levied against the appellant in the absence of any evidence except the so-called diary maintained by an employee or the confessional statement of the proprietor of the recipient firm? (ii) Whether in the facts and circumstances of the case an opportunity to cross-examine the witnesses was required to be given to the appellant? (iii) Whether the so-called recovery from one Shri Ram Kumar is admissible piece of evidence in view of law laid down by Hon'ble the Supreme Court in the case of CBI v. V.C. Shukia [(1998)3 410]? (iv) Whether the statements recorded of Shivji Ram, proprietor during the course of search, which later stood withdrawn was of any value as the same w....
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....slip in duplicate mentioning the date and the weight of the goods. One of the copies always use to be sent to the owner Shivji Ram. This witness conceded that whatever the goods were received at the godown from the factory, they are not accompanied by any excise invoice and also admitted that the godown was searched in the presence of independent witnesses. The officers had taken some documents in their custody. A panchnania was prepared and entrusted to him. He has also stated that the statement was made by him voluntarily and without any pressure. 6. On 1-11-1999, statement of Shri Shivji Ram, Proprietor of M/s. Jagdamba Steel Traders was also recorded under Section 14 of the Act, who also made certain admissions. Relevant extract of the statement of Shri Shivji Ram reads as under :- "…..I have been explained the provision of the said section fourteen and I have understood the same. I have to give true and correct statement and my statement can be used against me or any other person in any court of law. I am partner of M/s. Shiv Shakti Steel Tubes Driba, Punjab, which is engaged in manufacturing of ERW/Blank pipe/furniture pipe. The other partners are as under : ....
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....l from Shiv Shakti and Bhiwani Tubes (P) Limited received on Kacha slip and which is destroyed after the received (receipt?) of the pipes from the above factories/in general. We are showing that receipt of 9 to 10 black pipes, whereas the actual receipt is 2000 fourteen to fifteen Mt. The bill from the factories are received for 9 to 10 matric tonnes and the remaining quantity are being received without any in voice/bill A/c the No. 2 (unaccounted) sale proceed are kept in bank account No. 15463 at State Bank of Patiala, Model Basti, Karol Bagh, which is in the name of Balvir one of my employee A/c. The unacted slips are destroyed. The genuine turn over is about 1 to 1½ cores. Our company received two/three bill per day from the factory. The unaccounted sale proceeds are utilized in the purchase of strips iron in the manufacturing of black pipe. The strips are purchased from M/s. Gopal Steel Rolling Mills, Patiala Steel Rolling Milis and others. All are located at Mandi Gobindgarh (Punjab). xxx xxx xxx xxx xxx xxx  ....
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....aders shows that the receipt of the goods from the appellant which was duly entered in with details such as weight, size, supplier and the truck number mentioned in the Diary is also belongs to the appellant. The disclosure made by Shri Ram Kumar is further collaborated by the statement of Shri Shivji Ram who is the partner in appellant Firm and the proprietor of Jagdamba Steel Traders where he disclosed certain facts which were in his personal knowledge i.e. Bank account opened in the name of his employee Balbir. Balbir is getting only Rs, 2000/- per month and the deposits made at the time of opening of the Bank account, is more than 4 lakhs. We have gone through the retraction, which is only to the extent he was forced to write the statement. Shri Shivji Ram is a B.Com. and it cannot alleged that he is an illiterate man and succumbed to pressure of Revenue. He is a partner in manufacturing Unit and in the statement he disclosed certain facts, which were only in his knowledge. The disclosure made by Shivji Ram is further collaborated by Balbir his employee in whose name account is opened. It is also come on record that goods received at Jagdamba Steel Traders was being weighed at ....
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....m in his statement recorded under Section 14 of the Act. It is well settled that a statement made by a witness or a party tinder Section 14 is ex facie admissible in evidence as has been laid down by Hon'ble the Supreme Court in the case of Assistant Collector of Central Excise, Rajamundry v. Duncan Agro Industries Ltd. - 2000 (120) E.L.T. 280 (S.C.) = (2000) 7 SCC 53. In that case, the Supreme Court was considering the question as to whether it was necessary to comply with the precautions envisaged by Section 164 of the Code of Criminal Procedure, 1973 when a Custom Officer record a statement under Section 108 of the Customs Act. In para 9 of the judgment, it has been noticed that Section 14 of the Act is practically the same as Section 108 of the Customs Act and, therefore, it has been observed that the decision rendered by the Supreme Court under the other corresponding provisions will be of much advantage to understand the scope of the provisions. After referring to the provisions of Section 164 of the Code of Criminal Procedure and the judgment of the Supreme Court in Haroom Haji Abdulla v. State of Maharashtra - 1999 (110) E.L.T. 309 (S.C.) = AIR 1968 SC 832, their Lordships ....