2016 (8) TMI 577

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....ECHNICAL) For the Appellant: Shri B.L.Narsimhan, Advocate For the Respondent: Shri S.Nunthuk, JCDR ORDER PER: B.RAVICHANDRAN These two appeals are against Order-in-Original dated 31.3.2006 of Commissioner (Adj.), Raiipur, imposing penalties on the appellants under Rule 209A of Central Excise Rules, 1944. 2. Briefly stated, the facts of the case are that after certain investigations conducte....

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....chase finance from various finance companies fraudulently. Various machinery were shown received in their ledger book, shown as captively used for commissioning and installation. On physical verification most of these accounted machinery etc. were not found in the premises of the factory. The learned Commissioner confirmed the demand only on the ground that huge quantity of machinery, structurals ....

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.... of main demand will also have a bearing on the penal proceedings against the present appellants. 5. The learned Counsel for the appellants submitted that the whole proceedings resulting in the impugned order are not legally sustainable. The method adopted by the main party in the case, to raise finance creating dummy companies has been confirmed by Income Tax authorities. The modus operandi has ....

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....findings in the impugned order. 8. We find that the admitted facts of the case indicate a financial fraud by the main party with the association of various other persons. The scheme devised is to obtain finance from financing companies by creating dummy firms, showing purchase of large quantities of machinery and other materials through book entries only. Further, whatever machinery fabricated in....