2018 (1) TMI 205

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....d on account of clandestine removal of finished goods and the penalties were also imposed on the appellants. As the issue involved in all the appeals is common, therefore, all the appeals are disposed off by a common order. 2. The brief facts of the case are that the investigation was conducted at the factory premised of the M/s Malerkotla Steels and Alloys (P) ltd., M/s P.K. Alloys Pvt. Ltd. and Shri. Deepak Jain, Director of these companies. During the course of investigation, some diary was recovered from the possession of Shri. Deepak Jain wherein certain entries were found for clandestine removal of goods. Further, investigation reveals that the entries made in the diary confess the name of buyers and who were inspected and have adm....

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....f shortage/ excess of finished goods/inputs, the demand is not sustainable as the same has been disputed by the appellants. He further submits that the diary has been recovered from Shri. Deepak Jain. As Shri. Deepak Jain has been expired, therefore, the evidence recovered from his possession cannot be relied upon at this stage, therefore, the demands on account of clandestine removal of goods are not sustainable. He further submits that as the buyers of goods have already reversed the cenvat credit, in that circumstances, duty is not demandable from the appellants as the duty has already been reversed by the persons who had taken the cenvat credit. Therefore, the impugned order is to be set aside. 5. He further submits that as Shri. Dee....

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....ts. He further submits that there is some demand on account of denial of cenvat credit on inputs and on account of shortage/excess goods found during the course of investigation. The weighment has been done on the wheighbridge installed in the factory premises of the appellant itself with the help of two trucks of the appellant and the same has been recorded in the Panchnama and admitted by the appellants, therefore, on that account demand is required to be confirmed. He further prayed that as discussed above, the impugned orders are to be upheld. 8. Heard the parties and considered the submissions. 9. I find that Shri. Deepak Jain, Director of M/s Malerkotla Steels and Alloys (P) ltd and M/s P.K. Alloys Pvt. Ltd. has been expired on ....

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.... investigation, Panchnama was drawn and in the panchnama, it is recorded that the goods has been wheighed on the wheighbridge installed in the factory premises of the appellant with the help of two trucks then the weighment has been done by way of trucks. In that circumstances, the details of weighment is required to allege shortage/excess. Although, shortage/excess has been alleged against the appellant but no such details of shortage/excess has been enclosed or relied upon by the Revenue. In that circumstances, without any concrete evidence the demand on account of shortage/excess of Rs. 1,27,114/- and Rs. 15,21,377/- are not sustainable. Therefore, the same are set aside. 11. Consequently, the demand of penalty on this account is also....