TaxTMI 
TaxTMI 
2017 (9) TMI 1488
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....alia Central Excise duty of Rs. 6,36,896.02/- along with penalties of Rs. 2 lakh have been confirmed against M/s Babu Textiles Industries and further penalties of Rs. 25,000/- each have been imposed on M/s FB Textiles and N.B. Textile Engg. on whose behalf, the appeal has been filed by M/s BTI Textiles Pvt. Ltd. (Rakhial Road Ahmedabad). The main prayer made in the appeals are that the penalties imposed on the appellants be set aside and the order in original No.164/2008 be set aside. 2. Brief facts are that: i) A truck loaded with power loom machinery under cover of invoices issued by M/s NB Textile was intercepted on 24.10.1985 by Central Excise Officers. Driver of the Truck was informed that the goods were loaded from M/s Babu Text....
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....ces of other two firms namely, M/s F.B. Textile and N.B. Textile Engineer were ordered to be clubbed with that of M/s Babu Textile Industries. Accordingly, Collector confirmed demand of Central Excise duty of Rs. 6,36,896.02/- against M/s Babu Textile Industries and also imposed penalties. viii) Against above order in original dated 11.08.1989 M/s Babu Textile Industries, M/s N.B. Textiles Engineers and M/s F.B. Textile Industries filed appeals before the Tribunal. The Tribunal vide its order No. E/1274-1276/1998 dated 12.08.1998 remanded the case back to the adjudicating authority saying that adjudication order did not give separate finding in respect of two units, which were ordered to be clubbed with M/s Babu Textile Industries; parti....
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....ts giving the parties opportunity of personal hearing. xi) Thereafter by fresh O-I-O No. 164/2008 dated 22.09.2008 Commissioner of Central Excise Amd-I passed the impugned order confirming the duty of Central Excise of Rs. 6,36,896.02/- against M/s Babu Textile Industry and also imposed penalties of Rs. 2,00,000/- on them. Penalty of Rs. 25,000/- each also imposed on M/s N.B. Textiles Engineers and M/s F.B. Textile Industries under Rule 173Q of Central Excise Rules, 1944. xii) Now on behalf of three original noticees these three appeals have been filed by M/s BTI Textiles Pvt. Ltd. 2. All parties including revenue have been heard. 3. The main pleadings of these appellants are against the clubbing of clearances of these three dif....
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.... relied upon documents have not been made available to the appellant except copy of the Show Cause Notice, earlier order-in original and earlier Tribunal's order. 5.1 When this is a unique case where relied upon documents are not available either with the Revenue or with the appellants, we are unable to understand how could the proceedings progress and the liability of duty of Central Excise and the penalties against the appellants be sustained. The Hon'ble Gujarat High Court in the case of CCE & C. Vapi Vs Tuni Textile Mills Ltd. - 2008 (255) ELT (48) (Guj.) observes that when assessee is not provided with copies of all relied upon documents by the Revenue, the proceedings against the assessee have rightly been set aside by the Trib....
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....enial of natural justice. 4. In light of the aforesaid findings of facts recorded by the Tribunal it is apparent that there is no infirmity in the impugned order of Tribunal holding that there was violation of principles of natural justice. The Appeal is accordingly dismissed in absence of any substantial question of law." 6. Hon'ble Gujarat High Court in another case of CCE & C. Vs Chandan Steel Ltd. - 2009 (238) ELT 716 (Guj.) again observes that when relied upon documents have not been supplied to the assessee despite repeated written request, the department cannot be granted another opportunity after a lapse of more than 10 years since initiation of proceedings. Consequently, the department's appeal was dismissed by the Hon'bl....
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....eciated. The law does not require that principles of natural justice may seem to have been followed but in fact the record must reveal that principles of natural justice have actually been followed. The finding of the Tribunal in this regard is categorical and to the point. The Tribunal has found, as a matter of fact, after considering the record as it stands, that the documents on which reliance had been placed right from the stage of the show cause notice by the revenue were not supplied to the assessee despite repeated written requests. 7. In relation to the alternative contention suffice it to state that no such request appears to have been made in the first instance, before the Tribunal so as to find fault with the Tribunal of not g....