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TMI Blog2006 (1) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... ottai District (hereinafter referred to as the Applicant ) have filed an application for settlement of proceedings initiated against them in the Show Cause Notice No. 26/2005 in F.No. INV/DGCEI/CHSU/39/2004, dated 6-6-2005 issued by the Additional Director General, DGCEI, Chennai Zonal Unit, Chennai-90. Shri V.K. Veerappan, Managing Director of M/s. Aranthangi Chemicals (P) Ltd and Shri V. Gandhi, Proprietor, M/s. Karthik Chemicals, Aliyanilai, Aranthangi, Pudukkottai District have also filed applications as co-applicants. 2. The facts of the case are as follows :- M/s. Aranthangi Chemicals Pvt. Limited are manufacturers of Precipitated Calcium Carbonate (PCC for short) falling under heading 2836.90 of the Central Excise Tariff. On an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled for the benefit of SSI exemption during the year 2003-2004 as their clearance during the year 2002-2003 had not crossed the threshold limit of Rs. 3 crores. 3. On the basis of the above points they re-worked their duty liability which according to them, was to Rs. 40,91,215/-. Further, they submitted that they already paid Rs. 17 lakhs before the issue of SCN and another Rs. 8 lakhs on 5-11-2005 and they submitted that they were willing to pay the balance amount of Rs. 15,91,215/-. For payment of this amount also, they requested for eight monthly instalments. 4. The Revenue in their report dated 5-1-2006 did not agree with the contentions of the applicant and stated that the demand has been based on the Profit and Loss Account stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited purpose of availing overdraft facilities and, did not reveal the actual production and clearances of the PCC. He cited the decision of the Tribunal held in the case of Suvarna Polymers Pvt. Limited v. Commissioner of Central Excise, Hyderabad, 2000 (120) E.L.T. 148 (Tribunal) wherein the Hon ble Tribunal held that no duty can be confirmed solely on the basis of bank statements. He also reiterated that the demand for the period from 2000 to 2003 was based on trial balance sheets without any supporting evidence. The representative of the Revenue reiterated the contentions in the report dated 5-1-2006 and, pointed out that they had cleared the PCC without proper Central Excise Invoice and also under cover of invoices of another company kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cilities, it is difficult to verify the same. Prima facie, other documents and various statements do not support the contention of the applicant. Therefore, it is appropriate that a final decision on this matter should be taken in a full-fledged adjudication proceedings. Similarly, the contention of the applicant that they were entitled to SSI exemption is a matter to be examined in further details in the light of the documents supporting the Show Cause Notice. In view of the above, the Bench feels that the additional disclosure made by the applicant company is not full and final and their contentions in the application requires detailed examination which is possible only in a regular adjudication proceedings. 8. In this connection the Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and frankness from a taxpayer, even if such assessee had not been candid in the past. This concept was further elaborated by Their Lordship of Supreme Court in the matter of Commissioner of Income Tax v. Express Newspaper Ltd. (206 TTR 443) . Following this observation, the Principal Bench had rejected the application of M/s. Modi Alkalies and Chemicals Ltd. 9. Therefore, the Bench feels that the application does not meet the conditions of admission in terms of Section 32E of the Central Excise Act, 1944. Accordingly, the Bench is of the firm view that this application does not merit admission for want of full and true disclosure and, therefore the same is rejected and not allowed to be proceeded with in terms of Section 32F(1) of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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