TaxTMI 
TaxTMI 
2018 (4) TMI 1304
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....as doing large scale evasion of Central Excise duty, by clandestine removal of its finished goods, namely Sponge Iron. A search was conducted in the factory of Shri Ambika Ispat and also in the room of Shri Bidur Gupta, Peon of Shri Ambika Ispat, just outside the factory premises on 15/12/2010. Several documents were resumed both from the factory premises and from the room of Shri Bidur Gupta. Upon scrutiny, it appeared that the records recovered were documents like Sauda Register, File Containing Central Excise Return, Weigh Bridge Register, Central Excise Invoices, loose documents/papers, Notepad, as recovered from the Control Room, etc. From the room of Shri Bidur Gupta, Peon of Shri Ambika Ispat the officers recovered various incriminating records/documents such as Material Gate Pass in book form as well as loose form, loose papers showing production/clearance details of various dates, loading authorization slip, etc. Statement of various persons, including Directors of the Shri Ambika Ispat was recorded. Actual physical weighment of the finished goods - Sponge Iron was done during the period from 16/12/2010 to 19/12/2010 which revealed shortage of finished goods of 6257.770 M.....
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....terial gate passes where the Central Excise Invoices issued against, had been cancelled or later on diverted under Central Excise Invoices. Most of these, Sponge Iron ha d been removed to various manufacturers of iron and steel products of excisable goods, without payment of duty and without cover of Central Excise Invoice. Accordingly, it appeared that a total of 4003.5 MT have been cleared by the Shri Ambika Ispat without Central Excise duty during the period 07/08/2010 to 14/12/2010. Further, Shri Vikas Kumar, Weighbridge Operator stated that there were some dispatches over and above the dispatches, as in the material gate passes for the said period. The dispatches for the duration from 27/07/2010 to 06/08/2010 and one consignment on 07/08/2010 and another on 25th of October, 2010 are over and above the dispatches in the material gate pass without payment of duty and without cover of valid Central Excise Invoice. These dispatches totaling another 284.60 MT of Sponge Iron without payment of duty and without cover of invoices, to various furnace units. Thus, there appeared to be a total clearance of 4288.18 MT (4003.5 + 284.60) of Sponge Iron, clandestinely, as follows: Sr. ....
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.... the consignees - factory premises, as mentioned in the material gate pass/weighbridge reports, recovered from Shri Ambika Ispat and seized from the premises of the company and the room of the peon. Further, enquiry was made with some of the transporters. Such transporters also corroborated the removal and transportation of Sponge Iron, as mentioned in the material gate passes and daily weigh bridge reports to various named consignee / manufacturers of Iron and Steels. 6. Based on such evidences and statements, it appeared to revenue that Sponge Iron cleared and transported to the recipients clandestinely, who have further utilised such Sponge Iron for the clandestine manufacture of their finished goods, which have also been cleared clandestinely. 7. Further, enquiry at recipient' send of the sponge iron was made namely M/s G. P. Global Industries Pvt. Ltd . and others. The concerned persons (s) of the recipient units were summoned for enquiry and interrogated. After showing the documents recovered from Shri Ambika Ispat and the statements of various persons, as mentioned hereinabove including the Directors of Shri Ambika Ispat, the recipients have denied the receipt of the a....
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....from 15/12/2010 to 10/01/2012. As per the show cause notice, the clandestine clearance by Shri Ambika Ispat took place during the period July/August 2010 to October, 2010. It is presumed that out of the clearances made by Shri Ambika Ispat clandestinely, these appellants have received non - duty paid Sponge Iron and further manufactured finished goods which have been cleared without payment of duty. Thus, the show cause notices issued in August, 2015 is clearly barred by limitation of time, being beyond one year from the relevant date that is 10/01/2012. The appellants have filed regular returns and maintained proper records of the production and clearance. Nothing irregular or clandestine in record, have been found in the investigation made with these appellants. It is further urged that the learned Commissioner (Appeals) have observed that the show cause notices to these appellants have been issued within normal time, as investigation was initiated on 15/12/2010. The date of search and the show cause notice having been issued in August, 2015, is well within the period of 5 years prescribed in the erstwhile proviso to Section 11A (1) of the A ct. It is urged that the learned Commi....