TaxTMI 
TaxTMI 
2019 (6) TMI 1316
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....th the Central Excise Department since 2007-08. They have been availing SSI exemption till 2013-14. Thereafter the appellant have been paying duty and also filing their returns regularly. 2. The main raw material of the appellant is binding wire mesh and H.B. wire. The other appellant Shri M. S. Mukim is the Director. 3. These appellants purchase their raw material from various manufacturers including M/s Deepak Industries who are manufacturers of binding wire and H.B. wire and are registered with the Department of Central Excise. 4. The Officers of DGCEI, Pune searched the premises of M/s Deepak Industries under panchnama on 20.05.2013. They also recorded the statement of its prop. Shri Ravindra Singh and one Shri Ajay Kumar Singh....
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....dger of sales and purchase of M/s Deepak Industries, which are hand written in pencil. Further, Shri Ravinder Singh explains the entries made in the ledger for the period June, 2010 to May, 2013 (RUD-4). He further stated that some goods are cleared by M/s Deepak Industries without payment of duty and the details of such sales have been recorded in the pencil ledger register/ despatch register. In the said despatch register the name of M/s M. M. Industries Pvt. Limited - appellant appears at various entries. Further, on scrutiny of diary seized 'RUD-7' maintained by Shri Ravinder Singh, reveals that he personally fixes the rate of finished goods to be cleared to various customers on cash basis and same is noted in the said diary. The entrie....
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....Welded Mesh (Finished goods) 36,125 68,039 31,914 GI wire 3,500 3,730 230 HB wire (self manufactured raw material) 11,760 30,223 18,463 HB Wire (Purchased) Raw material 6,500 14,957 8,457 Wire Rod (raw material) 11,000 13,837 2,837 During the course of adjudication, statement of Shri Sanjay Dugar was recorded who was maintaining various records / accounts and reporting to the Director Shri M. S. Mukim. Mr. Dugar stated that he prepares rough worksheet on daily basis of the transaction and hand over the same to the Director Shri M.S. Mukim. As per the directions, the entries are made in the books of accounts thereafter the rough worksheet is destroyed. During the course of search so....
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....0.900 MT of unaccounted welded wire mesh and cleared the same from February, 2011 to May, 2013, as per the calculation in Annexure IV-D to the show cause notice. Further, some quantity allegedly cleared of finished goods was also worked out as per Annexure-V and VI as well as in para 7.3 to the show cause notice. Accordingly, on the total alleged quantity of finished goods manufactured and cleared clandestinely 2223.731 M.T., Central Excise duty of Rs. 1,48,96,735/- was demanded including cess for alleged clearance of welded wire mesh, valued at Rs. 12,57,39,305/- with further proposal for confiscation and proposal to impose penalty. Penalty was also proposed on the Director Shri M.S. Mukim and also on the other co-appellant namely M/s Deep....
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....le and the details were prepared on computer and relying upon the same, computerised chart was prepared and relied upon for raising the demand against the said M/s Deepak Industries. The demand on this appellant is also based on the same computerised extract prepared from the illegible hand written pencil ledger (RUD-4), in the show cause notice of M/s Deepak Industries. Further, the statement given by Mr. Ravinder Singh, Prop. of M/s Deepak Industries has also been found to be not admissible under Section 9D of the Act. Thus, the demand raised against this appellant also stand vitiated in view of the finding in the appeal of M/s Deepak Industries. For reference we quote para 7: "7. Having considered the rival contention and on per....
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....edger entries were not legible, it was not possible to re-write the ledger and prepare ledger on the basis of such entries. Further, no statement of the supplier of the raw material has been recorded to show that the raw materials were supplied to the Appellant unit for manufacture of finished goods. There is no statement of the person who has received any consideration on account of supply of raw material in case from the Appellant unit, neither there is transport document showing transportation of raw material alleged to have been used in the manufacture of the clandestinely cleared finished goods by the Appellant. No evidence in the form of manufacture of finished goods, use of any extra power, extra labour or use of other materials like....