TaxTMI 
TaxTMI 
2018 (2) TMI 810
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....cise officers on 23.6.2004 and during the course of verification of the stock, excess stock of 22435 boxes of Glazed Vitrified Tiles valued at Rs. 81,71,500/- as well as shortage were noticed in the finished goods of Glazed vitrified Tiles as recorded in the RG-1 Registrar. On further investigation, it came to the notice of the Department that the Appellant had allegedly manufactured and cleared finished goods clandestinely without payment of duty. Admitting to the shortages, clandestine clearances the Appellant paid total duty of Rs. 1,72,743/- on the same day. Further investigation led to the seizure of vitrified Tiles cleared without payment of duty lying in the customer s premises viz. M/s Delite Ceramics. On completion of investigation....
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....pellant and in the receipts of M/s Labh Traders had not been, verified by any professional hand-writing analyst, therefore the allegation that M/s Labh Traders is fictitious firm is not correct. Further, he has submitted that customers themselves were not clear about the alleged transactions, that is, whether they had received the goods from the Appellant or through M/s Labh Traders, hence, the allegation of clandestine clearance is not tenable in law. Further, he has submitted that confessional statements and random, scattered challans of M/s Labh Traders and LRs, found in the premises of the Appellant itself does not establish clandestine manufacture and clearance of goods by the Appellant through M/s Labh Traders. Further, he has submitt....
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....rtage and they have discharged duty on the said shortage, also the goods cleared without payment of duty by using transport document found in the factory was admitted and duty paid on such clandestine clearance. Further, he has submitted that the entire transaction of sale of manufactured Tiles without payment of duty and receiving consideration was carried out by creating a fictitious firm as M/s Labh Traders. The said firm was found to be non-existence; on verification of the address of the proprietor mentioned in the bank records of the said firm. Further, he has submitted that the buyers in their statements disclosed that purchases were made by them through the representative of the Appellant even though the payments were made in the na....
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....and this payment was not contested before the adjudicating authority being admitted by Shri Satish A. Shah, Authorised Signatory of the Appellant in his statement dated 23.6.2004. Also, the statement was not retracted. I do not find any discrepancy in the order of the ld. Commissioner (Appeals). Instead of clarifying the position, how the LRs of different transport companies lying in the premises where the consignor was shown as M/s Labh Traders, the Appellants made a bald attempt in assailing the order of the ld. Commissioner (Appeals) on this issue. On the balance of amount of Rs. 6,02,823/-,the ld. Commissioner (Appeals) mainly analyzing the evidences of the buyers of the vitrified tiles observed that the Appellant had created a fictitio....
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....rs have also confirmed that they have received tiles by placing orders on the Appellant company through their marketing representative but the Tiles were received under invoices of M/s Labh Traders. All these statements remain uncontroverted and the Appellant at no point of time has requested for cross-examination of these evidences. Besides, from the statement of the Director, it is concluded by the authorities below that M/s Labh Traders was a fictitious firm and created only for the purpose of clearance of vitrified tiles by the Appellant without payment of duty to various traders. On the issue of confiscation of excess quantity of 22,453 boxes of glazed vitrified tiles seized during the course of visit to the factory of the Appellant, t....