TaxTMI 
TaxTMI 
2017 (6) TMI 996
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....ng premises. • M/s Anil Sales Corporation B-2406, Narela Industrial Area, Delhi; • 14/21, Shakti Nagar, New Delhi, Residential premises of Sh. Pawan Kumar Jain, proprietor of M/s Jain & Company; • Office of M/s Anil Sales Corporation at E-2/245, Shastri Nagar, Delhi 52; • M/s SUraj Transport Co. FC-II, Shop No. 29, E-Block, DSIDC Industrial Area, Narela, Delhi and; • M/s Shakti Industires, D-89, Peeragarhi Industrial Area, New Delhi. 2. During search, relevant records were resumed including certain Kachi Purchis and delivery challans. Statements were recorded by the officers from connected persons of M/s Anil Sales persons (ASC) as well as M/s Jain & Co. (Jain) and also oth....
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....dent income tax returns. The raw material for both firms are procured separately and clearances are made separately. (b) ASC who is proprietor of M/s Jain was being helped by Mr. Pawan Jain in carrying out the activities. The accounts were also being maintained by the same accountant Mr. Vijay Jain. On this basis, it cannot be concluded that ASC is a dummy unit of Jain. (c) The only evidences cited by Revenue is that as it was Acid Wash belonging to Jain was being carried out in the premises of ASC without charge and no rent was paid by ASC to Mr. Jain for his office premises owned by him. These do not indicate that ASC is a dummy unit of Jain. (d) The charge of clandestine clearance has been made against ASC as w....
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.... also evident from the fact that no rent was being charged for the office occupied by ASC, which belonged to Mr. Jain and the premises of Acid Wash belonging to Jain was regularly being carried out at the facility of ASC but without any charge. The Ld. DR further submitted that even that the Hon'ble ACMM has pointed out that signatures of the recorded officers, which was absent in many of the statements, she emphasized and subsequent statement have confirmed the facts stated in the earlier statements. Squarely, the charges of clandestine clearance made on the basis of such statements needs to be upheld. 7. Heard both the sides and perused the records. 8. It is the case of the department that there is no mutuality of interest and fi....
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....rm out of the two would sent the finished goods to the buyers. (ii) The investigation has detected several incidences when payments were made by the one firm for material or the other. It is further seen that no rent has been charged by Mr. Jain for the premises owned by him and occupied by ASC. Even in respect of the Acid wash at warehouse belonging to Jain was carried out without any charge. 11. From the above evidences, the picture which emerges is that Mr. Pawan Jain is the proprietor of Mr. Jain and is also the de facto owner of ASC. The suppliers and buyers considered Mr. Jain as the owner of both funds. The evidences also indicate all the pervasive Role of Mr. Pawan Jain in the affairs of ASC. The free flow back of financ....
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.....10.2010. The Hon'ble ACMM has observed that the statements recorded from as many as 13 persons do not bear the signature of the officer regarding such statements. He has strongly criticized this aspect and has observed that it cannot be presumed that these statements were recorded by competent officers of the Central Excise department under Section 14 of the Central Excise Act. These are very serious observations which need to be taken note of. 14. Ld. Advocate has also argued that such statements do not have any evidentiary value and should be discarded. The adjudicating authority has also denied the cross examination of the makers of such statements. Even the officers who are purported to have recorded this statement have not been ide....