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TMI Blog2009 (3) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise (Appeals), Mumbai-III. 2. The Joint Commissioner, vide Order-in-Original No. 56/MK/2001 dated 27-7-2001, has confirmed the duty of Rs. 3,57,277.67 under Section 11A(2) of CEA, 1944 r/w Rule 9(2) of CER, 1944 and imposed equal penalty under Section 11AC of CEA, 1944 and Rule 173Q(1) of CER, 1944 alongwith interest under Section 11AB and also denied the deemed credit of Rs. 92,525.22. The said Adjudicating Authority has also imposed penalty of Rs. 1 lakh on Shri Manohar Ramchandra Punjabi, Director of the appellants. The said Order-in-Original was upheld by the Commissioner (Appeals) vide the impugned order. 3. The relevant facts that arise for consideration are that the appellants M/s. Madhu Tex Industries Ltd., ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention of the appellants and came to the conclusion that the appellants were aware of the undervaluation of the grey fabrics by the merchant-manufacturers and hence, extended period was rightly invoked. 5. The Advocate appearing for the appellants would submit that the appellants were not at ail aware of the undervaluation of grey fabrics done by the merchant-manufacturers, which fact gets revealed from the statements of merchant-manufacturers. He took us through the statements of merchant-manufacturers involved in the case of i.e. M/s. Shree Vishnu Fabrics, M/s. Kamal Synthetics, M/s. Megaji & Sons, M/s. Vinod Kumar, M/s. Meghajee Textile Mills, M/s. Shree Dadu Tex, M/s. Dayal Fine Fab, M/s. Rinkesh Corporation, M/s. Malco Synth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of the merchant-manufacturers and the appellants director clearly substantiate that the appellants were not aware and rather merchant-manufacturers have owned the responsibility of the undervaluation of the grey fabrics. It was also shown to the Bench that the blank declarations, duly signed by the merchant-manufacturers and also grey bills showing the value of the grey fabrics signed by the weavers and authenticated by the merchant-manufacturers were handed over to the appellants, who, in compliance with the central excise provisions, have only filled in the value as mentioned in the grey bills, duly signed and certified by the merchant-manufacturers. 8. Considered the submissions from both sides and perused the records. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in the grey bills, provided by the merchant-manufacturers, which cannot be considered as manipulation. The above facts have not been disputed by bringing in any contrary evidence by the Revenue. Rather the Lower Authorities have conveniently ignored the factual position and hence, findings have no basis. 9. During the relevant period, the Tribunal in series of judgements has clearly held that for wrong declaration of the value by the supplier, extended period is not available for recovery of the duty from the job workers. In this connection, the following judgements were relied upon by learned Advocate in support. (i) Nikharka Dyg. & Ptg. - 2006 (193) E.L.T. 307 (T-Mum.) (ii) Tribunal's Order No. A/942-943/WZB/06/C-II dt. 15-5-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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