9911796707
TMI Blog1996 (10) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... turers. They are registered under Rule 174 of Central Excise Rules, 1944 for the purpose of issuing invoices on the basis of which Modvat credit can be taken by the purchasers of iron and steel products from the Appellants. 2.2 In the course of checking of the records of the four Appellants, it was found that while in the statutory RG 23D record maintained by them they are showing sale and despatch to one person, in the private record seized from them, while the actual despatch of goods as to some other persons in some cases. It has, therefore, been alleged by the departmental authorities that they have contravened Rule 57GG of the Central Excise Rules, 1944 inasmuch as they have not maintained the statutory account RG 23D properly and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imately. But the marketing pattern, it is submitted, has not changed because of the heavy clout brokers. If the dealers do not fall in line with the dictates of the brokers, they are likely to lose the market. Nevertheless, it is submitted that this lapse has come about in some of the cases. Generally speaking, invoices issued and goods despatched are to the same persons. 3.2 Learned Consultant further submits that from a reading of the show cause notice, a charge has been made against the Appellants for contravention of Rule 57GG for abetting in duty evasion. But nowhere in the show cause notice, it has been pointed out as to who has committed the duty evasion and the extent of the same. In the absence of naming the persons for committin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvisages that invoice is to be issued in the name of the person who purchases the goods and the duplicate copy of the goods to be given to the carrier/transporter of the goods: obviously to the person to whom the goods have been sold. It cannot come to any other person. Therefore, if the Appellants have done anything else to the contrary, it straightaway leads to contravention of Rule 57GG. He submits that in the case of S.K. Industrial Corporation, 412 M.Ts. (approx.) of iron and steel products are involved; in the case of Popular Industrial Corporation, it is 46 M.T. (approx.); in the case of Maheswary Iron Steel Supply Co., it is 168 M.T. (Approx.); and in the case of Universal Mercantile Traders, it is 199 M.T. (approx.). The quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other three Appellants is not unreasonable. I, therefore, uphold the contravention of Rule 57GG of the Central Excise Rules, 1944 by the Appellants and the imposition of penalty on them by the adjudicating authority. 5.2 As regards cancellation of registration certificate of the Appellants herein, relevant provisions are provided under Rule 174(11) of the Central Excise Rules, 1944. For better appreciation of the power to cancel the registration certificate, entire Rule 174 is reproduced below :- Rule 174. Registration of certain persons. - (1) Every person, who cures, produces, manufactures, carries on [***] trade, deals as a broker or commission agent, holds private store-room or warehouse or otherwise uses excisable goods [or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct, he shall get the product endorsed on his registration certificate. (8) Every registered person, who ceases to carry out the operation or operations he is registered for, shall surrender his registration certificate immediately. (9) The proper officer shall proceed to grant a Registration Certificate under this rule within thirty days of the receipt of an application. If registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted. (10) Every registered person shall exhibit his registration certificate (or a certified copy thereof) in a conspicuous part of the registered premises. (11) Any registration certificate granted under this rule may be revoked or su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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