9911796707
TMI Blog2003 (2) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... als. The authenticity of the figures on the private records was admitted by the Directors and officers of the two companies as also their employees. The figures of clearances shown in such private records were cross checked with the goods transported by various transporters as further corroboration of such clearance. On comparison of the figures of production with such figures shown in the official registers, it was found that the units had indulged in clearance without payment of duty. The modus operandi was narrated by Mr. J.D. Vora, Excise In-charge of both the manufacturing units. The clearance documents under which the goods were sent to various parties were brought back by various transporters and were destroyed by him. The manipulation of production statistics covered extra clearances. Shri Satish Sanghvi, C.M.D. of DDIL and Director of TOPL confessed to maintaining duplicate sets of invoices. They were clearing duty paid goods through M/s. Deluxe Cargo Movers and those cleared through M/s. Deluxe Cargo Movers were non-duty paid goods. The transporters accepted to changing documents and acting to suit the convenience of the manufacturing units. Satish Sanghvi also claimed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemicals W. Wadhwa N.D. Wadhuram. 6. The charge against these appellants essentially is aiding and abetting TOPL and DDIL in the clandestine clearance of goods without payment of duty. 7. S/Shri Satish Sanghvi, Prakash Sanghvi and H.S. Dhillon were principal persons concerned with the unrecorded production and unauthorised clearances of dutiable goods in these proceedings. In their statements, inter alia, they admitted that although a number of consignees were shown, the goods ultimately reached their consignment agents. The consignments sent through DCM were those on which duty was not paid. It was admitted that the payments for such consignments were in cash only. Certain consignments were sent through Chawla Highway Carriers also. As per Shri Vora s statement the names of the consignees were fictitious. 8. The two manufacturing units and their officers are not appellants before us in these proceedings. We were informed that their appeals were dismissed by the Tribunal for failure to comply with the interim orders made by the Tribunal in terms of Section 35F of the Central Excise Act. 9. The issue before us in these appeals is whether the various acts performed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received from their staff. In certain cases the name of the consignor was left blank and that was filled in later on the instructions given by these two manufacturing units to him. The Branch incharge of the transporters one Shri Raman confirms this statement. The statement given by the staff of the transporter do indicate that there was an element of deceit in the documentation given by the consignors to them. But to attract penalty under the C.Ex. Act it has to be established that the transporter and their staff had knowledge that these defects in the documentation or misrepresentation apparent were specifically created for evasion of Excise duty. 14. India is the country where traders are predominat. Traders have to deal with sales tax, octroi, etc., but are known cheat these authorities. Vague, incomplete documentation, and benami documentation are almost standard practice in the transport of goods. Therefore the transporter even when he cooperates with the consignors or the consignees is generally unaware as to which law is being violated by such acts of omission done by him or consignor. In this situation the evidence has to show that such transporter in such circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that such goods were received by them from TOPL and DDIL through Chawla Highway Carriers. The delivery of such goods in the name of other consignees to the godown of ASC was brought out in the statement of the Manager of Chawla Highway Carriers. A part of the goods in the godown was claimed by Narain Das Wadhuram, sister concern of ASC who are also Appellants in this batch. Shri Vasudev Wadhwa of Narain Das Wadhuram in his statement had claimed that other consignors had supplied the camphor. Some other suppliers denied having supplied these goods but had claimed to be given accommodating invoices to Narain Das Wadhuram. However, Amo Chemicals had claimed to have worked on their behalf converting camphor powder into balls. 18. The evidence given by these 2 persons does not implicate them. It was Satish Sanghvi on whose instructions the goods were sent to this unit. Satish Sanghvi is the person who is termed as an architect and prime mover behind the fraud. He has admitted to manipulation of production records and clearance thereof without payment of duty. His statements name the Sulur Agencies and Bhagwan Dasani as the recipients of such goods at Madhura and Coimbattur. They ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below. Therefore since the goods which have been seized were cleared by these manufacturing units and that since it is shown that the goods had not suffered duty, the orders of confiscation would sustain. 22. M/s. Narain Das Wadhuram have filed an appeal. It is their claim that part of the goods seized from the premises of M/s. ASCI being 13,758 kilos of camphor and Isoborneol valued at Rs. 12,38,220/- belonged to them. Since these goods are confiscated they have become aggrieved persons. It is their claim that show cause notice was required to be issued to them. Since this was not done, the orders of confiscation of the goods did not sustain. 23. We have considered this plea. In paragraph 131 of the show cause notice this claim has been discussed fully and the claim of ownership of M/s. Narain Das Wadhuram has prima facie been found not tenable. This is the reason the show cause notice was not issued to them. In their appeal memorandum nothing has been said to be lie the various grounds given in the show cause notice rejecting their title. Therefore we find that they have no locus standi to file this appeal and accordingly dismiss the same. 24. We therefore make the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
