Commr. of CGST-Bolpur Versus M/s. C.P. Ispat Pvt. Ltd., Sri Naresh Kumar Sharma, M/s. Jaishree Steels Pvt. Ltd., Sri Shyam Bihari Makharia, Director
Central Excise
2018 (1) TMI 370 – CESTAT KOLKATA – TMI
CESTAT KOLKATA – AT
Dated:- 4-1-2018
Excise Appeal Nos. E/76775/17 (C. O. 76173/17) & E/76776/17, E/76712/17(C. O. 76172/17), E/76713/17 – Final Order No. FO/75010-75013/2018
Central Excise
Shri P. K. Choudhary, Hon'ble Judicial Member
Sri Anjan Dasgupta, Advocate For Appellant
Sri D. Halder, A. C. ( A. R. ) & A. K. Biswas, Supdt. ( A. R. ) For Respondent
ORDER
Per Shri P. K. Choudhary
Briefly stated the facts of the Appeal Nos.E/76775/2017 (C.O.-76173/2017) and E/76713/2017 are that M/s. C.P. Ispat Private Limited, the Assessee is engaged in the manufacture of Sponge Iron classifiable under Chapter 72 of the Central Excise Tariff Act, 1985. On 27.05.2014, the Central Excise Officers of Directorate General of Central Excise Intelligence (DGCEI), Kolkata search
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Rs. 5.00 Lacs on Shri Naresh Kumar, Director of the appellant company and also appropriated the amount of duty of Rs. 20,01,848.00 as deposited by the assessee. By the impugned Order the Commissioner (Appeals) upheld the confirmation of duty along with interest and modified the Adjudication Order to the extent that the penalty imposed on the assessee and its Director are set aside. Hence, the Revenue filed these appeals for imposition of penalty on the assessee and it s Director, Respondents herein.
2) Heard both sides and perused the appeals records.
3) I find that the Commissioner (Appeals) observed that there is no evidence of charge of clandestine removal of the goods against the assessee and it s Director and therefore penalties were set aside. It is observed that the credibility of the documentary evidence on which demand was raised would be disputed on various grounds. According to the Commissioner (Appeals) there is a dispute on the place of seizure of the documents as to wh
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Director of the Assessee had admitted clearance of the goods on showing the chart and paid the duty. There is no material available on record that the Director of the Assessee was involved in such clandestine removal of the goods. Hence, the Commissioner (Appeals) has rightly set aside the penalty on the Director of the Assessee.
4) The brief facts of the Appeal Nos.E/76712/2017 (C.O.-76172/2017) and E/76713/2017 are that M/s. Jaishree Steels Pvt. Ltd., the assessee is engaged in the manufacture and clearances of M.S. Billet classifiable under Chapter 72 of the First Schedule to the Central Excise Tariff Act, 1985. On 27.05.2014 the Officers of Director General of Central Excise Intelligence (DGCEI), Kolkata Zonal Unit searched the factory and office premises of the assessee and recovered various documents/records. It was found that the assessee cleared the M.S.Billet without payment of duty. Sri Shyam Bihari Makharia, Director of the assessee company after going through the seized do
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herein.
5) I find that the Commissioner (Appeals) observed that the department did not undertake any further investigation to examine the involvement of the Director of the assessee company and also could not record any evidence of clandestine removal of the said goods and therefore he set aside the penalties imposed on the respondents.
6) It is also observed that the Department could not adduce any evidence to establish the clandestine removal of goods without payment of duty. There is no dispute that the assessee admitted the clearance of the goods. The Director of the assessee company has also admitted this fact. They have paid the duty. Therefore, I am unable to agree with the findings of the Commissioner (Appeals). Accordingly, the imposition of penalty under Section 11AC of the Central Excise Act on the appellant company is justified. I find that the Director of the assessee company had admitted the clearance of the goods and paid the duty. There is no material available on rec
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