TaxTMI 
TaxTMI 
2019 (5) TMI 1286
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....pees Thirty Eight Lakhs Eighty Five Thousand One Hundred and Forty One only) (BED Rs. 38,55,025/- plus Cess Rs. 30,116/-) against M/s Shreyans Industries Ltd. (Unit Shree Rishab Papers), Village Banah, Tehsil Balachour, District NawanShahar under Section 11A of the Central Excise Act, 1944. ii. I impose penalty of Rs. 38,85,141/- (Rupees Thirty Eight Lakhs Eighty Five Thousand One Hundred and Forty One only) against M/s Shreyans Industries Ltd. (Unit Shree Rishab Papers), Village Banah, Tehsil Balachour, District NawanShahar under Section 11 AC of the CEA, 1944. iii. I also order recovery of interest under Section 11AB of the Central Excise Act, 1944 from M/s Shreyans Industries Ltd. (Unit Shree Rishab Papers), Village Ban....
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....e Rishab Papers), Village Banah, Tehsil Balachour, District Nawanshahar under Rule 26 of Central Excise Rules, 2002. 2. The facts of the case are that the main appellant is a manufacturing unit engaged in the manufacture of printing paper and soda ash. An intelligence was gathered that the appellant was indulging in evasion of duty by clandestine of removal, therefore, the factory premises was visited on 21.02.2003. During the search, certain documents were resumed. Physical verification of the stocks of finished goods was carried out and there was a shortage of 3135 Kgs of writing and printing paper involving central excise duty of Rs. 8,235/- which was debited by the appellant. The statements of Shri Puneet Assistant SO, Shri Vivek Shr....
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....3,27,521/- on the ground that the Revenue has made out the case of clandestine clearance of the goods on the basis of the certain documents resumed from the premises of the appellants alongwith certain GRs and also the "Pukar" register recovered from the premises of Truck Union Munshi Shri Mohan Singh. It is his contention that the appellant used to put forth the order for transport vehicle from the union but sometimes subsequently, the goods were not sold or transported and the trucks were returned back but the GRs remain with the appellants. Sixty GRs were prepared but all were not used for dispatch of the subject goods. He also submits that the appellant has obtained the affidavits of the buyers to the effect that they had not received a....
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....ustries Ltd. - 2003 (153) ELT 244 (SC) and Maya Mahal Industries vs. Collector of Central Excise, Meerut-1995 (80) ELT 118 (Tri.). 4. He further submits that the department has failed to produce any evidence to show that the procurement of unaccounted raw material, consumption of power and payment of labour charges and other raw material expenses required for the manufacture of the goods. In the absence of such evidences, the demand cannot be confirmed relying on the decision of CCE, Kanpur vs. S.C. Manufacturers -2005 (179) ELT 193 and Commissioner of Central Excise, Coimbatore vs. Sangamitra Cotton Mills (P) Ltd - 2004 (163) ELT 472. Therefore, in the absence of any evidence and cross examination, the demand cannot be confirmed on the ....
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.... to have been received by the above mentioned party, therefore, no penalty can be imposed. 8. In view of the above, it is his submission that apart from the admission part of the demand of duty, remaining demand is not sustainable. Accordingly, the impugned order qua a demand of Rs. 33,27,521/- is to be set-aside and corresponding penalties are also to be set-aside. 9. On the other hand, the Ld. AR opposed the contention of the Ld. Counsel and submits that as it is has been admitted by the appellant that they were engaged in the clandestine removal of goods at least with regard to M/s Sidharth Sales Corporation, therefore, revenue has been able to prove by all statements that the appellant was engaged in clandestine removal of goods. ....