AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 583
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....r 72 from raw materials i.e. MS Ingots/ Billets. 2. The DGCEI and local Central Excise Officers searched the factory premises of one company by the name M/s Shri Sita Ispat & Power Pvt. Ltd. (SSIPL) on 08.07.2011 and the residential premises of its two Directors, Shri Manoj Agarwal and Shri Kailash Agarwal on 09.07.2011. 3. During the search of the residential premises of Shri Kailash Agarwal, one laptop was found, which contained some data relating to consumption of raw materials, production and dispatch of finished products of the appellant company (in which Shri Kailash Agarwal was also a Director) for the period 01.07.2011 to 07.07.2011. One external hard disc drive and two pen drives were also recovered from the residence, but no....
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....elying on the files from the laptop including the three deleted files, the department came to the conclusion that the appellants had clandestinely manufactured and removed 3909.12 MTs of TMT Bars during the period May, to July, 2011 involving duty of Rs. 1,34,43,801/-. The duty of Rs. 14,14,324/- already paid was proposed to be appropriated. 9. The Department has also alleged, on the basis of the same evidence, that during the same period the appellants had clandestinely removed 174.144 MTs of Mis-Rolls (Scrap) involving duty of Rs. 4,41,336/-. 10. The show cause notice also proposed to deny cum-duty benefits to the appellants on the ground that since no duty had been paid on the impugned goods, no abatement towards duty payable was p....
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.... ii. The laptop did not belong to the appellant company but belonged to a third party, one Shri Sumit Agarwal. iii. Shri Manoj Agarwal, one of the Directors of the appellant company, has repeatedly mentioned in both his statements that the deleted files did not reflect the correct figures. He also gave specific instances where the deleted files showed no clearance of the finished goods whereas the daily stock account showed clearances. In other instances, the deleted files showed no production of TMT Bars on a number of days whereas the daily stock account showed production. The deleted files did not show the production from 21.06.2011 to 30.06.2011 whereas the daily stock did, etc. iv. He argued that clandestine clearanc....
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.... The investigation started through search of the residential premises of Shri Kailash Agarwal, Director. One laptop was seized from the residence. The laptop was opened in the presence of Shri Kailash Agarwal on the same day and the details pertaining to clearance of TMT Bars available in the laptop was printed out for the period 01/07/2011 to 07/07/2011. The resultant data when compared with the statutory records indicated a difference in the manufacture and clearance of finished products to the extent of 445.590 MT. The discrepancy was also accepted by Shri Kailash Agarwal in his statement who also deposited the duty due thereon to the extent of the Rs. 14,14,424/-. 18. The laptop was further subjected to forensic examination and certa....
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....In the above circumstances, we are of the view that the details printed out on 09/07/2011 covering alleged clearances for the period 1-7 July, 2011 stands admitted and hence the duty liability has to be sustained against the appellant. 20. The demand of about Rs. 1.38 Cr. has been fastened on the appellant on the basis of the deleted files printed out from the laptop said to contain the details of production and clearance for the months of May, June and July, 2011. The forensic examination of the laptop does not appear to have been conducted in the presence of Shri Kailash Agarwal, Director. Neither Shri Kailash Agarwal nor Shri Manoj Agarwal, Director admitted to the truth of such data. In fact Shri Manoj Agarwal, in his statement has c....