TaxTMI 
TaxTMI 
2005 (7) TMI 707
X X X X Extracts X X X X
X X X X Extracts X X X X
....lants during the period from January 1993 to July 1997 have manufactured and cleared the above referred goods without payment of duty by fraudulently removing the goods in the name and under the documents of M/s. Engineering Industries. The evasion of duty was done with full knowledge and involvement of three persons, viz. Shri Subhash Chandra Sharma, Shri Manoj Sharma and Shri S.P. Sharma. 2. Acting on an intelligence, the factory premises of M/s. Engineering Industries (EL), Mumbai, M/s. Sapna Coils Pvt. Ltd. (SCPL), Palghar and M/s. Navdeep Engineering (NE), Palghar, as well as one Guest House of this group situated at Porbunderwala Building, Chapsi Bhimji Road, Mazgaon, Mumbai-400 010, were searched by the Officers of DGAE, Zona....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bsp; M/s. Sapna Engineering (appellants) had the necessary facilities to manufacture the goods. 5. In respect of the first ground mentioned in para 30.1 of the impugned order, which pertains to the statement of Shri Manoj Sharma, Proprietor of M/s. Engineering Industries and Shri Subhash Chandra Sharma, Proprietor of M/s. Sapna Engineer, it may be stated that both these persons have retracted their statements, but the Commissioner had relied upon such statements without there being any corroboration. Shri Manoj Sharma during his cross examination had categorically stated that the goods in question were manufactured by them in the factory of M/s. Engineering Industries. It is further stated that the machines required for manufacture ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a ground to conclude that the goods in question admittedly supplied under the invoices of M/s. Engineering Industries were actually manufactured by the appellants merely because the appellants were equipped to manufacture the goods in question. 8. Another factor found favour with the Ld. Commissioner to hold that the goods in question were not manufactured by M/s. Engineering Industries was that they were not registered with the Excise Department to manufacture coils during the relevant period. It was mandatory to mention the name of the product to be manufactured by the unit in the licence/registration certificate and further M/s. Engineering Industries never represented that they had the necessary machinery or equipment to manufac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nce of notice to M/s. Neha Refrigeration violated the proceedings and the impugned order therein was set aside. 11. The other contention of the appellants is that the statements of proprietor of the appellants and M/s. Engineering Industries, upon which strong reliance is placed in the notice, were immediately retracted and when such retractions were on record, the Department ought to have collected independent evidence to corroborate the allegation from the customers of the appellants as to whether the goods received by them under the cover of invoices of M/s. Engineering Industries were in fact manufactured and supplied by the appellants and in this case no such investigation was carried out. 12. Shri Kallianpur, Materials....
X X X X Extracts X X X X
X X X X Extracts X X X X
....invoices of M/s. Engineering Industries so as to know whether they are actually received from M/s. Engineering Industries or from the appellants. 15. The Proprietor of the appellants as well as M/s. Engineering Industries were arrested on 29-7-97 and the statement given by them is not admissible evidence as they were in the custody of the officials as accused. The appellants rely upon the case of Shri Kantilal Patel v. CCE, Allahabad reported in 2000 (126) E.L.T. 462 (All.) - (Para 19 of the judgment). 16. The investigating agency searched and recovered all the documents pertaining to the procurement of raw materials and sale of finished goods. However, no co-relation of raw material to the finished goods have been done to e....