9911796707
TMI Blog1994 (12) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 50,000 on petitioner Senthil Velavan and Rs. 10,000 on each of the other petitioners levied under Central Excises & Salt Act, 1944, the `Act' for short. 2. Shri Balaraman and Shri Gopalakrishnan, the learned Consultants appearing for the petitioners submitted that initially a show cause notice was issued demanding a duty of Rs. 1,02,44,715 in addition to excess MODVAT credit in a sum of Rs. 13,22,059 and in adjudication the demand was reduced to Rs. 37.56 lakhs aforesaid, and this would prima facie show that without any basis a huge and exorbitant demand was raised in the show cause notice which was considerably brought down. 3. The learned Consultant submitted that in the manufacture of rexine cloth duty has been levied unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rinated paraffin wax which is one of the raw materials used in the manufacture of rexine cloth for the purpose of giving a coating and giving a glassy appearance to the fabric. It was submitted that in respect of the chlorinated paraffin wax the petitioner company had purchased the same from M/s. Agroflex Reinforce Inc. and one of the employees of the petitioner company, namely Murugesan on his own independently abusing his position in the company as a trusted Accountant purchased the goods from the normal supplier and sold it to his relations with which the petitioner company was in no way connected. This plea has not been properly appreciated by the learned adjudicating authority. 5. It was urged that cotton cloth is the main raw ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a has also sanctioned a term loan without interest and concessional rate of interest on the outstandings. It is further mentioned that SIPCOT has also given similar concessions. 8. Shri Jeyaseelan, the learned DR took us through the impugned order and drew our attention to para 62.13 where the learned adjudicating authority has referred to the formula of the petitioners vis-a-vis the test results for finding out the quantum of production and submitted that prima facie this is sustainable. The learned DR also referred to para 86 wherein the adjudicating authority has referred to the petitioners' own formula in working out the quantum in the impugned order. Regarding the plea relating to an allegation in the show cause notice with regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs was found has not been controverted in the impugned order. Taking note of the fact that cotton cloth being primary raw material; in the absence of any valid grounds in purchase and use of in regard to the same; either in the show cause notice or any finding against appellant/petitioner in the impugned order, we find considerable force prima facie in the plea of the learned Consultants that the quantum worked is not acceptable in entirety. At this stage, as rightly submitted by the learned DR, we are of the view that the plea in regard to cross examination of the purchasers of rexine cloth and also the plea that the basis in the show cause notice was changed and a different basis was adopted without bringing this fact to the notice of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
