2017 (11) TMI 15

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....rs falling under chapter 31.05 of the first schedule to the Central Excise Tariff Act, 1985. Based on an intelligence collected, the factory and office premises of M/s. GSCPL were searched by the DGCEI on 02.08.2013. Investigations that followed revealed that M/s. GSCPL have engaged themselves in the evasion of Central Excise duty by way of suppression of production of excisable goods and illicit/ clandestine clearance of the same on parallel invoices, gate passes, challan etc. without payment of central excise duty. The DGCEI's case was fortified with various corroborative evidences and confessional statements made under Section 14 of the Central Excise Act, 1944 by (i) Shri Akash Dubey, MD of M/s. GSCPL and (ii) Shri Lachchhe Kurmi Patel,....

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....sion of duty by suppression of production and it was a case of clandestine clearance on parallel invoices. The investigation has found that the respondent has received cash payments for which provisional payment receipts were issued but no excise duty was paid. He further argued that the Shri Akash Dubey, MD has admitted repeatedly the above modus operandi in his statements. Similarly Shri Lachchhe Kurmi Patel, the accountant and authorised signatory has also admitted the above modus operandi which has not been retracted. (ii) Learned DR for the Revenue submitted that Government institutions like Markfed and MP Agro have confirmed the receipt of goods from their unit, but they could not produce corresponding commercial invoices against a....

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....ch statement cannot be the only basis for the demand of such huge amount of duty. In the absence of any evidence he justified the impugned order. 9. After hearing both sides and perusal of record, we note that more than 80% of the clearances made by respondent are to Govt. agencies such as Markfed and MP Agro. As per the procedure adopted by the respondent, the goods are transferred on consignment basis, under challan indicating the value of goods to Govt. marketing agencies. Thereafter, the goods are sold to farmers and details of sales are intimated back to the respondent who subsequently issued the commercial invoices as well as central excise invoices for recovery of amount by them and payment of Central Excise duty on the goods ulti....