9911796707
TMI Blog2009 (2) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Relevant facts, in brief, are as follows : (a) When the officers visited the premises of the appellant-company, M/s. Arti Electrodes Pvt. Ltd., it was found that they were not registered with the Excise authorities and from the bill book maintained by them they have shown the clearance of goods valued totally as Rs. 29,22,892/-. In the neighbouring premises, there was a firm by the name M/s. Jaipur Cement and Pipes Agencies, (JCPA, for short) which was a trading concern. Shri S.S. Gulati was the Managing Director of the manufacturing company and he was also the power of attorney holder of JCPA. In his statement dated 27-3-97, Shri Gulati admitted selling goods worth more than Rs. 6 lakh through JCPA, even though they have purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of the original authority in both the cases. 5. Learned advocate submits that JCPA was selling the products not only of M/s. Arti Electrodes Pvt. Ltd. but also buying and selling products of others. He also submits that the show cause notice dated 24-9-97 have been issued taking into account the fact of value of clearance as Rs. 33,85,153/-, no new facts have been mentioned in the second show cause notice dated 10-11-2000. He also submits that all the statements including the second statement of Shri S.S. Gulati has been taken on or before 15-9-97 and therefore the second show cause notice have been issued after full facts have been in the knowledge of Department and, therefore, the demand by the second show cause notice is clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t with in the second show cause notice. Further, the statement dated 15-9-97 of Shri S.S. Gulati had been relied upon in the second show cause notice and therefore, the claim that two show cause notices were issued on identical facts is not correct. He also submits that 5 years extended period in respect of clandestine removal should be from the date of clearance and not from the alleged date of finalisation of the investigation. 6.2 As regards Shri S.S. Gulati, the learned advocate submits that he was not the appellant before the Commissioner (Appeals) but his case was not dealt with in the appeals of M/s. Arti Electrodes Pvt. Ltd. and JPCA. 7.1 We have carefully considered the submissions from both the sides and perused the records. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice demanding duty for the period February, 1978 to September, 1982 was issued on 28-2-1984 and second show cause notice dated 16-7-87 was issued for later period namely 1982-83 to 1986-87. In that context, the Hon ble Supreme Court held that subsequent show cause notices on same or similar facts could not be issued alleging suppression of facts on the part of the assessee. In the present case, the facts are entirely different. Here the first show cause notice did not deal with any demand of duty for the earlier period where clearance were effected without registration with Central Excise department and without following the Central Excise formalities. The first show cause notice mainly focused on offence relating to goods seized on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made a passing reference in the order about sustainability of penalty on Shri S.S. Gulati. However, taking into account that Shri S.S. Gulati is no more, we set aside the penalty, if sustained by the Commissioner (Appeals). The submission of learned Advocate that JPCA is not the assessee and Rule 173Q cannot be invoked appears reasonable and acceptable, the penalty on JPCA is set aside. 7.5 As regards the confiscation of the goods, as they were manufactured without registering with Excise authorities and were not entered in the statutory records even after crossing the exemption limit, the order of confiscation is upheld. However, redemption fine is reduced from Rs. 35,000/- to Rs. 5,000/- (Rupees Five thousand only) and the penalty in r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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