TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 9
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....acture and clearance of Dispersing Agents totally weighing 561120 kgs. involving a total duty of Rs. 17,39,921/- during the period April 2005 to Oct. 2006 and recovery of the same along with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by the said order, the Respondent preferred Appeal before the ld. Commissioner (Appeals), who in turn, set aside the impugned order and allowed their Appeal. Hence, the Revenue is in Appeal. 3. The Ld. A.R. for the Revenue reiterating the grounds of Appeal submitted that the relevant documents namely, seized records mentioned at serial No.A/24, A/25 & A/26 of the seized records revealed clearances of manufactured goods clandestinely without payment of duty, when compared with the RG-1 Register (DSA); this clearances had been confirmed in the statement of Shri Balbir Singh Nathuram Pilania, Excise in-charge and authorised signatory on 24.11.2006, the date of visit of the officers to the unit of the Respondent. On the same day in his statement Shri Yogesh Gupta, Director of the Respondent had also acknowledged the existence of the said seized records that is A/24, A/25 and A/26, retrieved from th....
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....names of the consignees to whom the goods were sold in cash. On the contrary, to camouflage the name of actual buyers, it has been categorically stated by Shri Balbir Singh Nathuram Pilania that the names appearing in the said seized records were false and entered only for the purpose of their accounting of the quantity of goods cleared without payment of duty on a particular day. Therefore, the verification of the receipt of the goods at the buyers end would not have yielded any result. 5. Countering the said arguments, the ld. Advocate for the Respondent has submitted that before the adjudicating authority, the Respondent had requested cross-examination of the witnesses, namely, (i) S/Shri K.Srinivasan, Supdt ,DGCEI, who made the Panchnama dated 7.11.06; (ii) Pankaj Balkrishanji Tapadiya, Panch witnesses of Panchnama dated 7.11.06 ; (iii) Hanumanbhai Mohanlalji Narania, Panch witness of panchnama dated 7.11.06; (iv) Balbir Singh Nathuram Pilania, Excise in-charge and authorised signatory of M/s Spectrum Dyes & Chemicals P. Ltd.; (v) Yogesh Gupta, Director of M/s Spectrum Dyes & Chemicals P. Ltd. and (vi) H.J. Bhagat, Supdt, DGCEI who recorded statements of Shri Balbir Singh Pila....
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....onfronting the said mismatch of the figures, who acknowledged the existence of the said documents/evidences A/24, A/25 and A/26, and also admitted that the entries recorded thereunder are manufacture of the said dispersing agents in the factory premises of the respondent and its clearances without payment of duty. The Revenue has further contended that on the same day, the statement Shri Yogesh Gupta, Director of the Respondent was also recorded, who has also agreed with the statement of Shri Balbir Singh Nathuram Pilania. Thus it is relevant to read and analyse the statement of Shri Balbir Singh Nathuram Pilania recorded on 24.11.2006, the relevant portion quoted as under: " On being asked regarding the clearances of dispersing agent appearing in the seized records A/24, A/25 and A/26, I state that such dispersing agent was not cleared under our central excise invoices and we have not paid central excise duty on such clearances. On being asked regarding the parties to whom such dispersing agent was sold I state that the dispersing agent was sold to various parties, in piecemeal basis, on cash basis.The parties used to come to our factory premises and take delivery of dispersing ....
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....and put my dated signature in token of having seen and perused the Panchnama and the seized records. Today viz. 24/11/2011, Ihave been shown the statement dated 24/11/2011 of Shri Balbir Singh Nathuram Pilania, Excise in-charge & authorised signatory of M/s Spectrum Dyes & Chemicals Pvt.Ltd. I have carefully gone through the statement and the Annexure appended to the statement and put my dated signature having in agreement with the same. On being asked regarding the seized records A/24, A/25 and A/26, I state that these are our private records and are containing the details of sale of dispersing agent to various parties which was cleared without payment of duty. On being asked I state that Shri Balbir Singh N.Pilania, Excise Incharge & authorised signatory of M/s Spectrum Dyes & Chemicals Pvt. Ltd. have correctly worked out the sales details of dispersing agent as appearing in the seized records A/24, A/25 & A/26. H has also correctly stated that the value of the dispersing agen sold by us without payment of central excise duty." 8. Analysing these statements/evidences, it is apparently clear that the aforesaid witnesses, namely the excise in-charge and the Director of the com....