TaxTMI 
TaxTMI 
2004 (12) TMI 149
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....yester fabrics) during the period 1-5-2000 to 31-8-2000 through certain invoices. The penalties have also been imposed not only on the appellant No. 1 but also on other appellants who were at that time employees. 2. The learned Counsel has contended that there is no tangible evidence on record to prove the manufacture and clandestine removal of the goods through 58 invoices and two challans referred in the show cause notice, to various buyers without payment of duty by the appellants and that these invoices were prepared only for getting financial assistance from the bank without there being any movement/clearance of the goods. Regarding the clearances through two challans, the Counsel has submitted that duty had already been paid before t....
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.... of the company appellant No. 1 was raided by the Central Excise Preventive staff on 19-10-2000 and 58 invoices were seized from their factory. The statement of appellant No. 2 Shri P.K. Vasukutty, the officer incharge present in the factory at that time was recorded, wherein he categorically stated that these were prepared only for having transaction with the bank and no goods were cleared to any customer through these invoices. Similarly, statement of Shri K.B. Goswami, representative of the appellant's company was also recorded and he nowhere admitted of having cleared the goods through these invoices to any customer in a clandestine manner without payment of duty. He only admitted the non-payment of duty in respect of the two challans N....
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....nufacture of extra finished goods. None out of appellants No. 2 and 3 had also in their statements admitted the clandestine receipt of inputs and manufacture of the finished goods out of these inputs and the subsequent clearance of the goods without payment of duty to any customer. The appellant No. 3 Shri K.B. Goswami admitted only the non payment of duty in respect of two challans No. 96 and 97 as observed above and duty payable on those challans of Rs. 89,904/- had already been paid by the appellants. No enquiry from any transport company or from the driver who transported the goods in a clandestine manner from the factory premises of the appellants has been made. No statement of any other worker working in the factory was recorded in re....