TaxTMI 
TaxTMI 
2017 (11) TMI 1094
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....fication, on inspection, is justified wherein the learned Commissioner (Appeals) have noticed anomalies in the findings of the Original authority and have been pleased to reduce the redemption fine and penalty. 2. The brief facts of the case are that the appellants are a manufacturer of M.S. Angles and M.S. Flats and their raw material is M.S. Ingot and Billet & Cutting. There was an inspection in the factory cum office premises by the officers of Central Excise-DGCEI (New Delhi) on 30/07/2014. Upon search/inspection a panchnama was drawn and as stated therein various records of the appellant like Central Excise bills, miscellaneous loose files, purchase file, sale bill file, raw material purchase file, form-4 register for 2014-2015, coa....
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....tock (in MT) Rate/MT Total value (in Rs.) 1. Billets 647 125 80.875 30.05 50.825 34500 17,53,463 2. M.S. Ingots 4946 110 544.060 174.55 369.510 32600 1,20,46,026 3. M.S. Angle 90.30 27.190 63.11 37500 23,66,625 Total 1,61,66,114 The officers on reasonable belief that the said excess found excisable goods were procured without payment of duty and finished goods were procured with intent to clear without payment of duty, issued detention memo on 30.07.2014. Subsequently, vide communication dated 29^th August, 2014 the I.O. of DGCEI, Delhi zonal unit converted the de....
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....nfiscation of raw materials and finished goods. Further, giving option to redeem, as regards finished goods on payment of redemption fine of Rs. 4 lakhs and as regards raw materials on payment of redemption fine of Rs. 21 lakhs, further penalty under Rule 25 was imposed on the appellant's company for Rs. 5 lakhs and further penalty of Rs. 2 lakhs was imposed on the Director- Shri R. K. Dixit. 5. Being aggrieved, the appellant preferred appeal before the learned Commissioner (Appeals) on the ground that that drawing of panchnama is defective and against the provisions of law, as the same was drawn with the assistance of interested witnesses who had accompanied the inspection team from New Delhi, Whereas the panchnama was drawn at Bith....
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....he stock verification report is part of the panchnama which is also not reliable on this score also. It is further pleaded that it is evident from the panchnama that several records including statutory records were seized/resumed by the officers but they have failed to point out any incidence of clandestine activity of either receipt of raw material or of clearance of any finished goods and as such the Order-in-Original is not tenable. It was also urged that the statement of Mr. R.K. Dixit which was recorded in the course of investigation, wherein he had stated that - "I admit the fault that we had not accounted the said goods, which were detained at our factory premises and further converted into seizer, as we had intention to clear the sa....
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....als) observed- that appellant have submitted copy of form-4 register, wherein stock of M.S. Billets duly accounted for, weighing 1,74,055 Kg, supported with invoice of valid purchase were also placed before the Adjudicating authority and in the non-speaking order, the submissions of form-4 register, though the fact case have been noted but there are absolutely no observations in the discussion and finding which is just stereo type observation in view of allegations made in the show cause notice. The learned Commissioner (Appeals) have also recorded that the adjudicating authority have rejected the evidences led by the appellant whimsically without a speaking order and as such benefit of doubt goes in favour of the appellant. The appellants ....