TaxTMI 
TaxTMI 
2016 (5) TMI 1198
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....appellant/assessee, M/s.Bhandari Control and Electricals Pvt. Ltd. (BCEPL) and the other two appeals against penalty are filed by M/s. Bhandari Capacitors Pvt. Ltd. (BCPL) and Shri Ajit B. Bhandari, Managing Director of the main appellant/assessee. 2. The brief facts of the case are that BCEPL are engaged in the manufacture of electrical capacitors liable to central excise duty. The BCPL was also engaged in the manufacture of capacitors. Both the units have office in the same building. BCPL surrendered their central excise registration on 31.03.1995 and leased their factory premises to BCEPL. The officers of central excise conducted certain verifications of goods and records in October, 1999. Further investigation resulted in a proceedin....
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....oner (Appeals). 3. Appeal by the BCEPL is taken up as that covers all aspects of the main proceedings in the case. There are four issues decided in the proceedings before the lower authorities. Of these, demand of Rs. 2,570/- on scrap cleared by BCEPL is not contested and as such, only three issues are to be decided in the present appeals. 4. The first issue is relating to the duty demand on capacitors cleared by BCEPL without payment of duty under the cover of challans and documents in the name of BCPL. It is the case of the appellant/assessee that BCPL have surrendered their challans on 31.03.95 and before they leased out their factory premises to BCEPL they have cleared the manufactured capacitors lying in the factory premises to t....
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.... central excise duty except for six items of capacitors. The reasoning given by ld.Commissioner (Appeals) cannot be faulted. The contention of BCEPL regarding clearance of these capacitors in 1994 itself to Indore office is not at all supported by any corroboration. As pointed out by the Commissioner (Appeals), the goods cleared on payment of duty in Feb. 1994, were alleged to have been sold after 4 to 5 years to various parties. This contention of BCEPL has been discounted based on specific evidences clearly discussed in the impugned order. Specific instances of sales of these impugned goods have been examined to counter the submission of BCEPL. Reliance has been placed on the inquiries conducted on the recipient's side of these impugned g....
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....allegation of inputs having not been used in the manufacture of final product before opting out of modvat scheme has been based on the modvat accounts, RG-I and other records maintained by the BCEPL. As pointed out in the impugned order, there is no allegation of clandestine removal of goods on which credits were availed. I agree with the findings of the ld. Commissioner (Appeals) on this issue of demand being hit by time bar. 7. Regarding the demand of modvat credit of Rs. 1.78 lakhs relating to wires and cables cleared under various challans, the findings of the ld. Commissioner (Appeals) is that these cables and wires have been cleared by BCEPL in connection with installation work for MPEB, at various places. It is an admitted fact th....