2017 (3) TMI 599

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....rmal period of limitation and for having reduced penalties. 2. The two undertakings involved are M/s El-Metal Corporation and M/s Standard Clutches & Spare Pvt Ltd manufacturing asbestos yarn and asbestos cloth and products thereon respectively. It is alleged that, in addition, two declarant units, M/s Metal Pulverisers and M/s Deekay Brakes, Also collaborated in the evasion of duty by falsely claiming to have cleared the goods manufactured by licenced units. It is the contention of the Central Excise authorities that M/s Metal Pulverisers manufactures 'carded fibre' that M/s El-Metal manufactures 'twisted asbestos yarn' while M/s Standard Clutches & Spares Pvt Ltd manufactures 'asbestos cloth' and M/s Deekay Brak....

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....ing. The carded fibre is sent to M/s El Metal for spinning and twisting and thereafter to M/s Standard Clutches & Spares Ltd for weaving into fabric under the rule supra which are then sold as such or converted into brake liners, belting etc. The allegation in the notice is that M/s Metal Pulverisers was made to appear as manufacturer who issues documents of clearance for goods produced by the licenced units despite not having the wherewithal to manufacture yarn or fabric and had not purchased any such material on their own. Allegedly, at the common main gate separate records relating to clearance of yarn, webbing, fabric and finished articles by each unit was not being maintained. On comparison with the records of the units, unaccounted ya....

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.... Further duty liability on clearance of goods sold by M/s Metal Pulverisers between 25^th July 1988 and 6^th May 1989 valued at Rs. 5,81,378.36 was also sought to be fastened on M/s Standard Clutches & Spares Ltd. Based on this, the notice has crystallized duty liability of Rs. 10,64,830.75 on goods valued at Rs. 91,28,642.65 for the period from 25^th July 1988 and 31^st December 1991. 6. The order-in-original dated 28^th September 2001 confirmed the demands as and imposed penalties. 7. It appears that M/s El Metal has paid Rs. 3,43,053/- towards their duty liability as computed in accordance with the terms of the Kar Vivad Samadhan Scheme, 1998 (KVSS) between 24^th May 1999 and 30^th July 1999. M/s Standard Clutches & Spares Pvt Ltd ....

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....ths confirmed in the impugned order. The setting aside of confiscation as well as that of penalty imposed by original authority on M/s Deekay Brakes and Shri KS Sachdeva are also in dispute. 9. We have heard the Learned Authorized Representative who argued vehemently on each of the grounds of appeal and the response of Learned Counsel for appellants. 10. The plea for reversal of reduced penalty, waiver of penalty and setting aside of confiscation by the first appellate authority are not supported by any grounds of appeal that press these for our interference. Owing to this, we find that these cannot be considered to have been seriously pursued or advanced by Revenue. 11. Considering the differential amount liable to be recovered be....