AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 504
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.... No. Period Amount (in Rs.) 1. Zeto Engineers and Fabricators E/60017/2020 April, 1995 - June, 1999 20,57,473/ 2. GDB Enterprises E/60048/20020 Jan. 1995 - July 1999 47,32,887/ 3. Zeto Engineers and Fabricators E/60050/2020 Feb. - May, 1999 3,44,398/- 2. Briefly, the facts of the present case are that the appellants are engaged in the manufacture of Tractor parts and engine parts. 2. That the Central Excise Preventive Staff of Chandigarh visited the factory premises of the Appellants. On scrutiny of the records i.e. RG 23 A Pt. I & II, it was found that the Appellants had been availing modvat credit on GP Sheets. On round of the factory, it was noticed that none of the O.E. parts i.e. final products manufactured by the Appellants and lying in stock was manufactured out of GP Sheets. Further, no stock of GP sheet as such or in the form of scrap generated in the process of manufacture of OE parts was found in the factory premises. 3. That on scrutiny of the records resumed from the Appellants, it was revealed that the complete descriptions of the goods were not mentioned on the purchase invoices of GP sheets. For....
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....ance to remand order of Hon'ble High Court, the Respondent supplied all documents pertaining to investigation conducted before issuance of show cause notice and also granted opportunity of hearing. The Appellants again filed written submission on various grounds. In the reply, it was submitted that demand is barred by limitation as well as on merits. OE parts could be manufactured from GP sheets and there was no suppression on the part of the Appellants. 3. Further, following the due process the original authority confirmed the demand along with interest and penalty. Aggrieved by the said order the appellants filed the appeals before the Commissioner (Appeals), who dismissed the appeals of the appellant. Hence, the present appeals. Heard both the sides and perused the material on record. 4. The Learned Counsel for the appellants submits that the Impugned Order is not sustainable in law as the same has been passed without properly considering the facts of the case and without following the due procedure of the law. He further submits that the present issue is no more res integra and has been decided by this Tribunal in the following cases which have attained finality: ....
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....onger res integra and has been decided by this Tribunal in various cases (cited supra) which have been accepted by the department as no appeals have been filed by them. Therefore, I find that the present cases are also based on the same investigation which have already been decided vide cases (cited supra). In this regard, it may be pertinent to refer to the relevant findings of the Tribunal in the case of Silence Auto which was also based on the same investigation as follows: 12. The impugned orders stands passed by the lower authorities in terms of the remand proceedings by the Hon'ble High Court vide their order dated 21-8-2008. On going through the said order of the Hon'ble High Court, I find that the appeal does not stand disposed of by the Hon'ble High Court on the merits of the case, as is clear from the re-produced part of the order, it stand remitted to the lower authorities, preliminary the ground that the entire material collected by the Revenue was not supplied to the assessee. 13. The Assistant Commissioner has passed a detailed order by referring to the evidences collected from the OE manufacturers as also from the dealers who have sold t....
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....at the procured GP sheets were cleared by the appellant in the market. Further, the Revenue has also miserably failed to show as to from where the appellants have procured the HR/CR sheets, their final product cannot be manufactured. In the absence of any evidence produced by the Revenue, the burden of countering and rebutting the evidence does not get shifted to the assessee. 15. In any case and in any way of the matter, I find that the appellants have tried to explain as to how the GP sheets can be used by them in the manufacture of their final product. It stands explained by them that such GP sheets are first dipped in the sulphuric acid as a result of which Zinc coating thereon disappears and CR/HR sheets emerged. In such a process the sheets gets de-galvanised and can be used in the manufacture of final product.. The said stand does not stand accepted by the lower authorities by observing that it is not a profitable proposition and economically viable for the assessee. Admittedly, the above observations are in the nature of assumptions and presumptions. The appellants have also produced a sheet of metal half of which was galvanised and the other half was de- ....
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....s remains unrebutted. 18. The appellants have also taken a categorical stand that there was no benefit for them the produce HR/CR sheets from grey market and obtain bills of GP sheets since both were chargeable to 16% rate of duty. The said plea does not stand accepted on the ground that the GP sheets are costlier than HR/CR sheets and the same are used in the industries like manufacture of utensils, coolers, buckets, air conditioners which are in unorganised sector and required no Modvat documents. Accordingly it stands observed that from the said fact it can be reasonably inferred that the Modvat documents of GP sheets are freely available for utilisation of credit of by unscrupulous manufacturers. On the other hand, HR/CR sheets can be obtained from the grey market without payment of excise duty, while the corresponding Modvat documents of GP sheets can be obtained by payment of amounts which are only a fraction of duty amount involved. This explains the economic rationale behind adoption of such a modus operandi. Obviously, the above reasoning is in the realm of surmise and conjecture. The judicial decisions are not required to be made on the basis of one'....