TaxTMI 
TaxTMI 
2017 (11) TMI 1288
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....ries (Ms/Adarsh for short) was issued private bonded warehouse license for the manufacture of grey knitted fabrics out of POY/PFY. The Directorate of Revenue Intelligence, investigated allegations that M/s Adarsh diverted the duty free materials procured by them against the CT-3 certificates into the domestic market with the sole intention to evade Central excise duty and take undue advantage of the concessions provided to hundred percent EOUs for export promotion. DRI issued the show cause notice dated 28.4.2005 covering the period 01.04.04 to 30.11.04 which was decided in the impugned order as follows: a. Central Excise duty amounting to Rs. 5,16,99,803/- on the goods procured duty free but diverted into DTA without payment of du....
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....ound during investigation by DRI that the said unit never had the manufacturing capabilities to convert the POY/PFY into fabrics. The machinery was found to be defunct, full of dust and found to have been never used. There was also no suitable skilled workers for handling production. The statements recorded from various persons connected with the unit conclusively established that no manufacture had taken place. The textile expert Shri Yogesh Vaidya, in his technical report dated 19.01.2005, also confirmed that no commercial production was ever carried out in the said unit. 6. The main kingpin was identified as Shri Mohammed Anwar General in the activities of the fraudulent 100% EOU. In his voluntary statements recorded on several dates,....
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....Excise duty amounting to Rs. 5,38,28,494/-. This fact was corroborated by the voluntarily statement of Shri Mohd. Sherali Lalani, Shri Puneet Rungta, Shri Vineet Tayal, Shri Amit Agarwal, and Shri Devndra Khurana. Shri Mohd. Anwar General, sold the clandestinely removed POY/PFY/PTY through Shri Parmesh Goyal only who found out the prospective buyers and collected sale proceeds. Thus, Shri Parmesh Goyal @ Babloo Goyal, deliberately helped in the illicit removal of goods which he knew and had reason to believe that they were liable for confiscation under the provisions of Central Excise Act, 1944. He also obstructed the investigation by not responding to various summons issued to him and is responsible for evasion of duty which render himself....
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.... liable for penal action under Rule 26 of the Central Excise Rules, 2002. From the above, we find that Sh. Goel as well as Sh. Agarwal were actively involved in the diversion of raw materials from M/s Adarsh. Both the above persons were accomplices of Sh. Mohammad Anwar General and have admitted to their roles in the respective statements. Since their active participation in the evasion of duty stands established, we find no reason to interfere with the penalties imposed on both the above persons. The same are accordingly upheld and the appeals of the above persons are dismissed. 9. Next we consider the role played by M/s G.N.Tech as well as Sh. Munish Sharma, Directors as well as that of Sh. Puneet Rungta, partner of M/s May Flower Synt....