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TMI Blog2009 (6) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... d Mawa with Shri Deepak Kothari is the Managing Director and Shri Mitesh Kothari as another Director M/s. Ekta Flavours Ltd. is a subsidiary company of Pan Parag India Ltd. who processed supari and Gutkha and supplied to Pan Parag Pvt. Ltd. Shri D.R. Arora is the owner of the transport company. 2. When the hearing was over and dictating the order was commenced, it was brought to our notice that application for adjournment of the proceeding by one Shri Anil Kumar Srivastava has been addressed to Hon ble President, CESTAT on the ground that he has filed a writ petition in the Hon ble High Court, Allahabad. We find that the said Shri Anil Kumar Srivastava is not a noticee/party in the show cause notice and in the order in original. No appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repared by Ekta Flavours Ltd. indicated that the quantity of raw materials actually supplied was in excess of what has been accounted by M/s. Pan Parag as received from them. Receipt of excess raw materials is also corroborated by private documents maintained by the main appellant; the main appellant has prepared out-slips in respect of materials issued from packing material godown which was found received as mentioned in the slips maintained at the work place. The main appellants have prepared miscellaneous packing slip at the time of packing of the finished goods and they also prepared loading slips for the finished goods and some of the consignments corroborating to the miscellaneous packing slips/loading slips were found not accounted a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red 450 of these loading slips. Shri K.K. Anand, Advocate fairly concedes that G.S. Sachan and Umesh Pal have left their employment. 5.2 It was submitted that the loading slips relied upon did not contain name of the consignees. However, they contained details like date of loading, quantity loaded, nature of the goods loaded and in 141 slips, the truck numbers were also mentioned. It is conceded by the learned Advocate for the appellant that about 50% of the lorries marked in these slips belong to the main appellant themselves. 5.3 He also submits that the finished goods were being sold through a network of C F agents and 20 of them were contacted by the department. No adverse evidence has been collected from any of the 20 customers a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of the appellants. 5.6 Learned Advocate also pleads financial hardship. He submits that they are major unit paying duty amounting to Rs. 50 crores per annum. They have recorded profit of about Rs. 3.42 crores for the financial year 2008-09. He submits on instruction from the main appellant, that they are willing to deposit Rs. 1.5 crores to enable the appeals to be heard finally. He also submits that any order of further pre-deposit will cause undue hardship and dislocation in running the company. 6. Learned Advocate Shri A.K. Raha for the department presented synopsis containing his submissions on the documentary evidences relied upon in coming to the conclusion that there was unaccounted manufacture and clandestine removal of exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h went through Andhra Pradesh covered by transit passes. He seeks order for pre-deposit of the entire dues as per the impugned order. 7. We have carefully considered the submissions from both sides. As already mentioned, matter is before the Tribunal for the second time. Voluminous evidences have been relied upon and a very lengthy order has been passed in the matter. We, with the help of the learned Advocates from both sides, come to the following prima facie findings and conclusions : (a) We find that there was discrepancy in stock of raw materials in the premises of the main appellant at the time of visit by the officers. The main raw material, supari, gutkha were admittedly processed by subsidiary company of the main appellant and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acie, of the view that the demand based on invoices recovered is sustainable fully. (d) However, in respect of the demand based on loading slips, several discrepancies have been pointed out by the learned Advocate for the appellants and all these have prima facie, a bearing on the quantum of demand and not on whether there was evasion. (e) The plea of financial hardship in a case involving alleged clandestine removal has to be viewed with reservation as the books of accounts cannot be reliable indicator of the financial status of the company. (f) Prima facie, we find that no specific evidence has been cited in respect of S/Shri Deepak Kothari, Mitesh Kothari and D.R. Arora. 8. Taking the entire facts and circumstances into account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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