TaxTMI 
TaxTMI 
1996 (10) TMI 535
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....re classifiable under the then Item No.40 of the erstwhile Central Excise Tariff. One Shri P.R. Tondon was the Proprietor of M.P. Steel. There was another partnership firm in the name and style of Deepak Safe and Co. (`M/s. Deepak' for short), whose partners were Shri P.R. Tandon (Proprietor of M.P. Steel) and his real brother, Shri K.B. Tandon. From 1-1-1975 to 31-12-1975 the minor son of Shri P.R. Tondon, Shri Deepak Tandon became the sole proprietor of Deepak. There was also a Khadi and Village Industries Commission (KVIC) Unit, M/s. Shankar Seva Ashram (`Seva Ashram' for short) whose President was one Shri K.S. Pandey. It was alleged in the show cause notice dated 1-7-1980 that Deepak was a related concern of M.P. Steel and the value at....
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....der simplified procedure. The duty liability had been determined under the defunct rules. The case of the Revenue is based on the statements of the witnesses, who had retracted from their earlier statements. The basis of the case had been demolished by the cross examination. 4. Shri P.Das, SDR replied that when offence was committed the relevant rules under which the duty had been demanded were there on the Statute Book. There were two charges against the appellants - one regarding selling goods through related persons and the other passing of the goods manufactured by the appellants as if manufactured by Seva Ashram. The witnesses had given their statements voluntarily without any duress and the subsequent retraction was an after-though....
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.... have the same meanings as in the Companies Act, 1956 (1 of 1956)." The first part of the definition requires that the person, who is sought to be branded as a `related person' must be a person, who is so associated with the assessee that they have interest directly or indirectly in the business of each other. It is not enough that the assessee has an interest direct or indirect in the business of the person alleged to be a related person, nor is it enough that the person alleged to be related person has an interest direct or indirect in the business of the assessee. It is essential to attract the applicability of the first part of the definition that the assessee and the person alleged to be a related person must have interest direct or....
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....rer's premises to the showroom may be considerable. No allowance on these accounts had been given while arriving at the differential duty. On this issue, therefore, we hold that the allegations are not substantiated. 9. Now, coming to the other issue of sale on vouchers of Seva Ashram, it had been alleged that M.P. Steel manufactured steel furniture themselves but obtained the bills for the same from Seva Ashram. This allegation is largely based on the statements dated 15-10-1977 and 7-11-1977 of Shri K.S. Pandey, President of the Seva Ashram. These statements are clearly incriminatory. There are details in the statements, which only Shri K.S. Pandey could know. They reveal the modus operandi of M.P. Steel. Specific details about bills i....
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....use notice had been calculated at Rs. 1,70,402.16. The show cause notice was issued on 1-7-1980. It is thus, seen that a part of the demand from 1-4-1975 to 1-7-1975 is even beyond the maximum period of 5 years. Although there is reference to surreptitious removals, no basis for alleging suppression or clandestine removals had been detailed. The application for Special Procedure under Simplified Procedure Scheme had been filed by the appellants on 16-2-1976 for working under Chapter VIIB procedure of the rules. The appellants had submitted that the clearances during the financial year 1975-76 when they were working under the self-removal procedure had been effected under approval and consent of the Jurisdictional Central Excise Officers and....