TaxTMI 
TaxTMI 
2005 (6) TMI 191
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.... The appellants are a company carrying on business of manufacturing of paper based decorative laminated sheets. They obtained necessary licence before commencing their activities since almost a decade. They are also maintaining records correctly as per the provisions of the Central Excise Act, 1944 and the Rules made thereunder. Their records were also inspected by the authorities concerned on number of occasion, including audit parties. The stock of the raw materials and finished goods were also regularly verified, checked and compared with the statutory and private records and no variation is found on a single occasion. 3. It is the case of the Department that the Officers of the Central Excise (Preventive), Ahmedabad, gathered....
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....od April 85 to July 85 was dropped as time-barred) and penalty of Rs. 30 lakhs was imposed on the assessee and Rs. 10 lakhs each was imposed on the other appellants. 6. The assessee filed an appeal once again before the Tribunal at New Delhi on the ground that classification of the said goods was already settled by the Tribunal's judgments and order of the Apex Court as reported in 1993 (68) E.L.T. A46 and they are entitled for benefit of Notification No. 49/87, dated 1-3-87. The Hon'ble Tribunal remanded the matter for de novo adjudication and for reconsideration on the question of classification of the goods and the applicability or otherwise of the exemption of Notification No. 49/87-C.E., dated 1-3-87, holding that the classi....
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.... Page 7 of the impugned order as follows:- "During the course of detection and further investigation, Department had recorded statement of Shri Suthar, Chemist of the firm, wherein he had stated that normal course of production of first grade quality sheets would be 70% and second and third quality sheets would be 15% each. However, based on statement and further course of investigation, it was found that the assessee had cleared clandestinely first grade sheets in the guise of IInd and IIIrd grade sheets and thereby evaded Central Excise duty of Rs. 43,56,765/-. The party's defence to the above aspect is that Chemist is primarily concerned in manufacturing line and is not a proper and authorized person to state anything regard....
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..... 11. In regard to base paper not accounted in the books of accounts, which was purchased from M/s. Visnagar Taluka Audyogic Sahakari Mandali Ltd., and used in the manufacture of laminated sheets, which were cleared clandestinely, the observation of the ld. Commissioner is as follows :- "I fail to understand what type of proof conclusive proof or a proof beyond a pole of reasonable doubt is desired in such proceedings. The theory of strict liability of criminal law is not attracted in proceedings like this before me. When the purchase bills were in the name of M/s. Vidya Laminates, payment details also stand reflected in the books of accounts of supplier. If they have sold base paper as such then it was on them to show and estab....