TaxTMI 
TaxTMI 
TaxTMI 
2018 (10) TMI 967
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....clusion of investigation issued a SCN dated 22-1-2004 alleging clandestine removal of tread rubber without payment of duty, during the period 1-1-1999 to 21-8-2001. Ld. Commissioner of Central Excise, Cochin, vide Order in Original No 50/2005 CE dated 30.12.2005, confirmed the demand of differential duty of Rs. 2,41,12,537 with equal penalty on the appellant while imposing penalties on other appellant's other companies and their directors. 2. It is seen that the case is built up by the Revenue on the following. (i) The appellants have procured Carbon Black and used it in an unaccounted production. It was alleged that Carbon Black consigned in the name of various purchasers was diverted to the appellant-companies as can be seen from endor....
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....V. Thomas the C&F Agent for Carbon Black, it was assumed by the Department that Carbon Black, which was consigned to various units on invoices (as per Annexure C1 to 73), has been diverted to the appellants. The Department has not proceeded to investigate whether such other firms have received the Carbon Black or not. The Department has conveniently ignored the fact that such endorsement was made by certain officers of M/s. A.V Thomas to extend the benefit of free transportation to other units by using the name of the appellant. The Department has conveniently ignored the fact that all the companies listed therein are registered with Rubber Board; It has also ignored the averments of concerned persons during cross examination. (ii) The ....
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....ngineer who installed the software in the computer. (v) There is nothing on record to show that the appellants have received any amount in benami accounts. The accounts referred to by the Department were not operated by appellants. The Bank officer stated that the appellants could not have been associated with such accounts. The actual existence of the persons holding the accounts have been revealed during cross-examination. Mr. Jojo Joseph has deposed that he used to render services to P.T. Sunny and P.T. Jose got machinery for the same. Income Tax authorities who have investigated based on the same evidence have concluded that it is not possible to say that the alleged benami accounts are accounts of the appellant-companies. (vi) Clan....
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....ries of the appellant. 4. Ld. AR has elaborately reiterated the findings of OIO and submitted that the Adjudicating Authority elaborately discussed the evidences adduced by the investigation vis-a-vis the arguments put forth by the noticee (appellants) from pages 186 to 236 of 0I0 and confirmed the duty demand and imposed the penalties. The Ld. The Commissioner after following the procedures of natural justice, confirmed the duty demand and imposed penalties on M/s. TRPL, M/s. TTRPL, Shri K.P. Varkey, Shri K.V. Tolin and Shri Jojo Joseph. Adjudicating Authority summarized his findings in Paras 448 to 451 of 0I0 (pages 226 to 236). He submitted that the dept. could prove the case to maximum extent, even when the appellants resorted to destr....
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....ppellant companies. It was submitted by Ld. AR that most of the finished goods came into existence at the premises of M/s. TTRPL but majority of the clandestine clearances were effected using the invoices of M/s. TRPL. However, demand has not been confirmed against any particular company, though the clearances were sought to be clubbed. 5.3. We find that Ld. counsel for the appellants submitted that Hon'ble Supreme Court in the case of Gajanan Fabrics Distributors Vs. CCE, Pune - 1997 (92) E.L.T. 451 (SC) has held that by confirming the demand upon all the seven units the CESTAT treated them all as assessees and implicitly recognized their independent existence. The Hon'ble Supreme Court has remanded the case back to the CESTAT for reconsi....