TaxTMI 
TaxTMI 
2018 (9) TMI 1057
X X X X Extracts X X X X
X X X X Extracts X X X X
....All these appeals since involving identical disputes, they are taken up for common disposal. For the sake of convenience, the parties involved hereinafter are referred to as assessee, co-noticees and the department. 2.1 The assessees in these batch of appeals are M/s.Sri Sathuragiri Match Co. (E/266/2012), The President Match Co. (E/269/2012), Raja Match Works (E/42416/2014) and Kanthakumar Match Works (E/42421/2014). 2.2 The appeals E/267, 270/2012, E/42418, 42423/2014 have been filed by Shri G. Nagarajan (Partner of President Match Co. and Partner in Shanmugam Match Company). 2.3 Appeals E/268, 271/2012, E/42419/2014, E/42424/2014 have been filed by K. Shenbagakumar (Partner in President Trading Co. and office-in-charge of the group companies concerned) 2.4 Appeals E/42417/2014 and E/42422/2014 have been filed by J. Srithar (Partner of Raja Match Works and Kanthakumar Match Works). 2.5 Above named persons have filed appeals against the duty liabilities and penalties confirmed by lower appellate authorities in each case. 2.6 Revenue is aggrieved by the setting aside / reduction of differential duty in respect of President Match Co. & Sri Sathuragiri Match Co. and....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 07-12/12 dt.17/1/12 - 2,00,000 - 25,73,046 - 2,00,000 3 E/271/12 V.Shenbagakumar 10/2010 CE dt.31.8.10 07-12/12 dt.17/1/12 - 2,00,000 - 25,73,046 - 2,00,000 4 E/283/12 CCE Madurai [against dropping of demand] 10/2010 CE dt.31.8.10 07-12/12 dt.17/1/12 6,11,669 - - - - - 5 E/284/12 CCE Madurai 10/2010 CE dt.31.8.10 07-12/12 dt.17/1/12 - For Enhancement of Penalty - - - - 6 E/286/12 CCE Madurai 10/2010 CE dt.31.8.10 07-12/12 dt.17/1/12 - For Enhancement of Penalty - - - - 7 E/287/12 CCE Madurai 10/2010 CE dt.31.8.10 07-12/12 dt.17/1/12 - For Enhancement of Penalty - 5,00,000 - Nil 8 E/288/12 CCE Madurai 10/2010 CE dt.31.8.10 07-12/12 dt.17/1/12 - For Enhancement of Penalty - 50,000 - Nil 9 E/285/12 CCE Madurai 10/2010 CE dt.31.8.10 07-12/12 dt.17/1/12 - For Enhancement of Penalty - 10,00,000 - 25,000 10 E/266/12 Sri Sathuragiri Match Company 09/2010 CE dt.30.8.10 03-06/12 dt..17/1/12 4,27,061 4,27,061 11,30,337 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al running into 74 pages and 307 pages of documents and worksheets to disprove the allegations made in the SCN and confirmed in the related corresponding orders-in-original. iii) Similarly, the proceedings relating to President Match Co. and others, 96 pages and 307 pages of documents and worksheets had been filed. So also, the proceedings relating to Raja Match works and others, 52 pages and 307 pages of documents and worksheets had been filed. In the proceedings relating to Kanthakumar Match Works & Others, nearly 54 pages and 307 pages of documents and worksheets had been filed. However, none of the contentions and documents submitted by these noticees were considered by the lower authorities. In the result, the orders of both adjudicating authority and the Commissioner (Appeals) are prejudiced orders which have been passed without taking into consideration the various submissions, contentions and arguments put forth in the documents / worksheets submitted by the noticees. iv) In proceedings related to President Match Co. and others, the assessee vide communication dt. 09.07.2009, had requested for cross examination of 7 witnesses and examination of 6 witnesses. H....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has been made to many documents such as S.Nos.1-1/2, 2/2, 22, 30, 2-3/3, 3-1/3, 2/3, 3/3, 23, 28, 4-1/2, 2/2, 17/1/2, 2/2 21, 29, 5, 64, 6, 24, 7, 8 to 12 (24 files) and 46 (Mahazar drawn at Vilampatti office) and those documents are returned. vi) The allegations are merely based on statements. Statements are stereotype in nature with identical usage of words, sentence formations etc. No persons while explaining a particular issue will use the same word and sentence formation will not be of same. In this regard, Ld. Counsel relies upon the decision of Tribunal in the case of Nabha Steels Ltd. Vs CCE Chandigarh - 2016 (344) STR 561 (Tri.-Chan.) which has inter alia held that identically worded statements cannot be relied upon. (vii) Units like Appu Match Works, Raja Match Works, Balaguru Match Works, Kandakumar Match Works etc. do packing on duty paid match splints which does not amount to manufacture. In fact, some the units like Appu Colour Match works, Eshwari Match Works, Jai Hind Matches and Shanmuga Match Works were manufacturing handmade matches. The President Trading Co. is the trading unit of the group who procure machine made matches and handmade matches from these ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., they also manufactured matches for ITC Ltd. However, due to quality problem, the inspection group of ITC had asked for repacking which resulted in packing of same goods twice and as the assessee had to pay wages for repacking, the same was entered in the slip. However, the assessees entered actual quantity in the RG.1 and hence there is difference in production of match bundles. xii) There was no shortages of quantity in any of the assessee's unit on the dates of visit of the officers. No proper stock taking was conducted by the officers and the units of Raja Match Works and Kanthakumar Match Works were not at all visited by the officers. xiii) Coming to the department Appeal E/283/2012 filed against M/s.President Match Co., Ld. counsel submits that duty amount involved is only Rs. 6,11,699/- which is below the prescribed limits for filing appeals before Tribunal as per the litigation policy of the Government. In the case of Sri Sathuragiri Match Company, the department has come in Appeal E/290/2012 against dropping of duty demand of Rs. 7,03,276/- which is also below the minimum prescribed limits for filing appeals. In Galaxy Match Company similar orders were passed by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the accounts of M/s.Shanmugha Match Works for ultimate clearance to the trading company. iv) M/s.Sri Guru Match Works, M/s.Sri Rama Match Works and M/s.Universal Match Works have carried out such transactions with the pre-condition that the unaccounted match bundles would be cleared only to M/s.President Trading Company and the sale proceeds would be received only in cash. v) The payments for duty paid removals are paid by cheque. vi) These facts are admitted in the statements given before the investigating officers. vii) Documentary evidence such as delivery notes / chits and pocket note book corroborate the facts admitted in the statements. viii) The evidence also established the control of the respondent M/s.President Match Company over the suppression of production and ultimate clearances from the other five companies. ix) The dipped splints were cleared with permission / on payment of duty to the other units only to facilitate the clearance of unaccounted raw material and subsequent clandestine removal of match bundles. x) M/s.President Match Company has controlled the entire operation from supply of raw material, conversion and transportation of the fini....