TaxTMI 
TaxTMI 
2018 (7) TMI 164
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....ar, Delhi (vii) M/s Matta Paint House, C-134, Gokulpur, Delhi 2. Brief summary of the proceedings conducted at above mentioned places is detailed below: M/s Real Industries Coating, A-14, Gali No.6, Libaspur, Delhi 2.1 Raw Material valued at Rs. 7,90,702/- and finished goods viz. Industrial paint/rubber seal valued at Rs. 4,76,096/-, total valued at Rs. 12,66,798/- found lying there were seized as Sh. Ram Lalit Shah, Production Supervisor at the said premises could not produce the proper documents towards manufacture and accountal of the said raw material/finished goods. CPU of the computer installed and the documents relevant to the investigations were also resumed for further investigations. Sh. Ram Lalit Shah in his statement stated that the company was manufacturing REAL, MARS, CHARMINAR, IKKA, NICE brand paints and rubber seal of REAL brand, that the procurement of raw material and clearance of finished goods was looked after by the owner of the company Sh. Gulshan Matta. M/s Real Paint India, 291-292, HSIDC, Ind.Area, Rai, Sonepat 2.2 At the time of visit, Sh. Rajeev Juneja, Supervisor was present in the premises where he informed that the firm was engaged i....
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....ar in his statement dt.13.09.2011 stated that the cash recovered from their premises was the sale proceed of the goods manufactured in his factory which was made in Kacchi Parchies (loose slips). He admitted that the goods manufactured in his factory at Sonepat and at Libaspur, Delhi were cleared 60% on bills and 40% on Kacchi Parchies (loose slips); that the amount of the goods cleared on Kacchi Parchies (loose slips) was received in cash. He submitted 4 cheques of Rs. 7,50,500/- each total Rs. 30,00,000/- on his and his father's behalf and stated that the cheques may be used against their duty liability and also the amount of Rs. 12,50,500/- recovered from his trading firm may also be utilised towards duty liability. He also undertook to take registration for M/s Real Paints India, Sonepat and M/s Real Industrial Coatings, Delhi. Premises at A-791/1, Shastri Nagar, Delhi 2.5 Shri Rambaksh, Landlord of the said premises was present at the time of visit of the Central Excise of officers. Certain documents, relevant to the investigations were taken into possession by the visiting officers. Finished goods valued at Rs. 4,17,204/- lying in the said premises were seized by the vi....
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....to circumvent their liability, they have not brought on record of procurement of raw material, manufacturing and clearance of the finished goods in violation of the provisions of Central Excise Act, 1944 and the rules made thereunder and thus appeared to had contravened the provisions of Rule 4,6,8,9, 10 & 11 of the Central Excise Rules by their acts of omission and commission. Accordingly, the main appellant M/ss. Real Paint India, Rai, Sonepat were issued Show Cause Notice C. No.CE-20/Tech/SCN/Real Paint/16/K/12 dated 07.03.2012 proposing confiscation of raw material valued at Rs. 21,65,598/-, packing materials valued at Rs. 84,090/-- and finished goods valued at Rs. 8,02,434/-, collectively valued at Rs. 30,52,122/-. Penal action was also proposed against them under Rule 25 of the Central Excise Rules,2002. 4. During search on 13.09.2011 and 15.09.2011, the following goods were seized at various premises as details given below:- Details of the premises Description of the goods Detained/seized Value of the detained/seized goods Remarks M/s. Real Industrial Coating, A-14, Gali No.6, Libaspur, Delhi Residence premises at 6/2, Roop Nagar, New Delhi F....
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....med the demand of Central Excise duty of Rs. 10,87,153/- along with interest and imposed equivalent penalty on the appellant. The seized goods valued at Rs. 30,52,122/- were confiscated under Rule 25 of Central Excise Rules, 2002 and were allowed to be redeemed on payment of fine of Rs. 3,25,000/-. Penalties were imposed on the other parties under Rule 26 of the Central Excise Rules. Penalty was also imposed on the appellant under Rule 25 of the Rules. 6. The appellant went in appeal before the Commissioner (Appeals). In his order dated 10.1.2018, the Commissioner (Appeals) reduced the demand to Rs. 3,89,650/- by allowing benefit of SSI exemption on cumulative value of the total clearances, deduction of value of raw material cleared on which no Cenvat credit was availed and VAT/ST was paid, and reduced penalty under Section 11AC equal to reduced central excise liability. Penalty under Rule 25 on the appellant was set aside. Penalties on the other parties were upheld. Confiscation of raw material, packing material and finished goods collectively valued at Rs. 30,52,122/- was also upheld along with redemption fine of Rs. 3,25,000/- in lieu of confiscation imposed by the adjudicati....
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....estine clearance of the same to their sale counters without cover of proper invoices and without payment of central excise duty. Firms were owned by the family members and firms were not maintaining any record of production and clearance of the goods. During investigation, kachcha parchis were found and the statements of various persons were recorded. It emerged that there was a ratio of 60% to 40% between accounted clearances and unaccounted clearances. The findings of the Commissioner (Appeals) in relation to appellant that they had crossed SSI turnover limit, existence of kachcha parchis and penalties imposed on the appellant and other persons are not being challenged by the appellant. The appellant are only contesting confiscation of raw material, packing material and finished goods and imposition redemption fine. It clearly shows that the appellant have accepted that there was clandestine removal of the goods and there was malafide intent to evade payment of duty. 11. On the issue of confiscation of raw material and packing material, it is admitted fact that no Cenvat credit has been taken by the appellant. In that situation, there is force in the contention of the appellan....