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TMI Blog2010 (6) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... otice had stated that no goods were received by them without Central Excise invoices and they were not part of the activity of duty evasion - Panchnama was defective, no proper procedure followed for measuring; no explanation is coming regarding Annexures A and B, result of cross examination of panchnama witness, inability of investigating officer to explain the methodology and their inability to explain how the grey fabrics received under 3 challans on 4-9-97 could be processed and cleared on the very same day – Appeal rejected - E/979/2009 - A/1003-1004/2010-WZB/AHD - Dated:- 18-6-2010 - Shri B.S.V. Murthy, Member (T) REPRESENTED BY : Shri N.J. Gheewala, Consultant, for the Appellant. Shri Avinash Thete, SDR, for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- AED) during the panchnama proceedings. 3. Shri Rajendraprasad Brijmohanlal Saraf, Proprietor of M/s. Brijmohanlal Saraf, S-207, JJ A.C. Market, Ring Road, Surat, who was also available during the Panchnama proceedings also made similar revelations that he used to send the grey fabrics under the Grey Challans to the assessee for processing and on receiving back the same goods duly processed from the assessee but without the cover of Central Excise invoice, he again used to send grey fabrics to the assessee commensurate with the same grey challans in cyclic manner. He also showed some Grey Challans of his firm indicating 117 pieces of MMF admeasuring 12,188.25 L. Mtrs. valued at Rs. 2,01,106/- which he had got back duly processed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resulted in confirmation of demand for duty amounting to Rs. 2,59,160/- with equal amount of penalty on the assessee, of Rs. 2,500/- on Shri Indravadan A. Vakharia and penalty was imposed on 13 other also. However, we are now concerned with duty demand and penalty on the appellant firm. On an appeal filed by the appellant against confirmation of demand, the Tribunal vide Order No. A/1123-124/WZB/2004/C-IV, dt. 8-12-04 remanded the matter to the original adjudicating authority with direction to grant permission for cross examination of material witnesses and decide the case afresh. The original adjudicating authority held that panchnama proceedings were vitiated and in view of lack of corroborative evidences, the show cause notice is not sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submissions made by both the sides. In this case, according to records, the search proceedings lasted for 32 hours from early morning on 5-9-97 to 6-9-97 and statements of Shri Indravadan A. Vakharia and one of the merchant manufacturer was recorded on 6-9-97 itself. Six other recipients of processed fabrics was recorded in December 2001 whereas the search was conducted on 5-9-97, wherein all of them admitted that they had received the goods without payment of duty. 9. Annexure B lists 34 lots of fabrics (720 takas) admeasuring 66345 L. Mtrs. valued Rs. 10,94,692/-. The details of Annexure B are taken from challans of grey fabrics allegedly not tallying with the physical stock available in the unit at the time of search. (alleged short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty. The search commenced early in the morning on 5-9-97. This would mean that the goods received on 4-9-97 were processed on the same day and removed. The investigating officer also could not explain how the measurement of the fabrics was made. It is to be taken note of that the officers also found excess stock and while in respect of one annexure, a separate show cause notice was issued and in respect of Annexure D, even though it was alleged as substituted fabrics, no further proceedings have been undertaken as per the records and as per the observations of Commissioner (Appeals). Further, the Panchnama does not connect the appellants/invoices with grey fabrics found short. Another point that has been brought out is that the some of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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