9911796707
TMI Blog2006 (3) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... option to redeem the same on payment of fine of Rs. 5 Lakhs, confirmed the demand of Rs. 9,68,525/- on 532 bales of finished goods cleared from the assessee s factory at Roha without payment of duty under the proviso to Section 11A(1) of the Central Excise Act, 1944 and imposed a penalty of Rs. 19,59,482/- (equal to the duty amount) under Section 11AC read with Rule 9(2) and/or Rule 173Q and/or Rule 229 of the Central Excise Rules. He has also ordered the assessee to pay interest at the appropriate rate on the duty confirmed under the provisions of Section 11AB of Central Excise Act. 2. The case begins with the interception of a vehicle loaded with man made grey fabrics at the factory gate of the assessee by the officers of the Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly School Bags, Socks and printed fabrics while investigation revealed that the assessees never manufactured any of these items at the Roha plant and none of the 373 bales detected at the godown contained either school bags or socks or Printed fabrics. Therefore, 373 bales were detained and subsequently seized under a panchnama. Statement of Shri Khapre was recorded in which he inter alia admitted that 101 bales cleared on 7-12-1997 from the Roha plant to their SMP godown were cleared without payment of duty and paid an amount of Rs. 1,62,500/- as part payment. Further scrutiny of records showed that there was a removal of 532 bales of processed fabrics involving duty of Rs. 9,68,525/-, without payment of duty. 3. Based on the above inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to show that processed fabrics were taken over by the court receiver and sent back to their SMP godown/Roha factory. However, as rightly pointed out by learned S.D.R., there is nothing in the report to establish that bales of processed fabrics initially cleared by the appellants on payment of duty to the Coimbatore dealer were taken over by the receiver as the receiver has stated in his report that the Coimbatore dealer had stated that :- once the goods are delivered in bales by the Transporters to them at their godown the said goods are opened immediately and checked for identification of fabric, quality, quantity, shortage etc. as per packing slip in each bale. Thereafter the goods are stacked in the godowns in shelfs, on flooring or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods from Coimbatore either to the appellants SMP godown or from factory at Roha has not been established. Further, there is no inward entry in the Roha factory gate inward register showing return of goods into the factory. No D3 intimation of receipt of duty paid goods into the factory as required under Rule 173H of the Central Excise Rules was followed by the appellants. Apart from this, we note that the assessees had been changing their stand in respect of the goods in question right from the beginning during the course of drawing up of panchnama at the SMP godown, they took the stand that 373 bales found stored therein were fabrics brought back from Coimbatore and repacked at their SMP godown after allotting a fresh Central Excise Bale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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