2017 (7) TMI 238

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....ongipa Roadways Pvt. Ltd. and imposed penalties under Rule 25/Rule 26 of Central Excise Rules, 2002, and penalty under Rule 26 also imposed on the Director of the transporting Company Shri Naval Agarwal. The background of the case is that there was an investigation on M/s. Ravi Raj Processors, an independent textile processor, in connection of alleged clandestine removal. Follow up investigation was carried out with the present appellants. It is the case of the department that whatever goods were found lying with the present appellants were manufactured and cleared clandestinely by M/s. Ravi Raj Processors. Accordingly, the goods were seized and proposed for confiscation and also proposed for consequential penalties under Rule 25/26 of Cent....

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..... Shiv Shakti Transporter and cleared on payment of duty by Angadpal Industries. Therefore it cannot be said that the said goods were cleared by M/s. Ravi Raj Processors. 2.2 As regards M/s Ambika Synthetics, he submits that there is no statement or any evidence to show that the goods found in the premises of Ambika Synthetics were cleared by M/s. Ravi Raj Processors. It is further got reinforced on the fact that after seizure of goods more than 50% of the total goods were released on satisfying that the goods were supplied by M/s Parmeshwar Dyeing and Sudarshan Dyeing. This shows that even remaining 50% of the goods also do not belong to M/s. Ravi Raj Processors as there is no evidence to support the allegation of the department. 2.3....

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....the said goods were cleared without payment of duty by Ravi Raj Processors. I find that from the identity of the goods it cannot be established that the said goods were cleared without payment of duty by Ravi Raj Processors as the goods did not bear any marking indicating any relationship with Ravi Raj Processors. There is no inculpatory statement of any of the person of the appellant admitting the charge of the department that the goods were supplied by Ravi Raj Processors. On the contrary in case of Moongipa Roadways Pvt. Ltd. and Ambika Syntheitcs, the appellants produced evidence that the goods supplied by some other parties and not of Ravi Raj Processors. In case of Ravi Raj Processors it was categorically stated by Shri Sudhir Choudha....