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TMI Blog2013 (9) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... r two factories - All these evidences ‘prima facie’ lead to conclusion that the tin containers were manufactured in the factory of M/s Sardar Metal Industries and were cleared in the name of the other two units i.e. M/s Ram Containers and Arjun Enterprises, as if the same were manufacturing the goods without the aid of power. As regards the financial condition M/s Sardar Metal Industries stands sold in the year 2003 - the other aspect of the financial position does not stand disclosed on record. Ld. Advocate draws our attention to income tax return filed by Sanjay Arora of M/s Sardar Metal Industries. However, the contention of ld. Jt. CDR is that when the goods manufactured by the said applicant were being sold in the name of the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the name and style of M/s Ram Containers and M/s Arjun Enterprises are also engaged in the manufacture of tin containers without the aid of power and were enjoying unconditional exemption. It may not be out of place to mention here that all the three units are located in the vicinity of each other. 3. The factory of M/s Sardar Metal Industries was visited on 26.9.2000 by the Central Excise Officers, who conducted various checks and verification and as a result, a register was found and seized by the officers indicating clearance of tin containers not reflected in the statutory record. On being asked, Shri Rakesh Kumar, Accountant of the said company, M/s Sardar Metal Industries, deposed that tin containers manufactured by M/s Sardar Meta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... containers. However, the revenue approached the buyers, who deposed that they have received the tin containers from Sardar Metal Industries under the cover of two parallel bills and not from M/s Ram Containers. 5. On the basis of the above, proceedings were initiated against the appellants culminating into passing of the impugned order by the Commissioner. 6. Ld. Advocate appearing for the appellants submits that the Revenues case is primarily based upon the statement of Shri Rakesh Kumar, Accountant of M/s Sardar Metal Industries which statement stands retracted by him subsequently. He also submits that all the buyers of the appellants were not brought under investigation at their end. As regards the recovery of the register from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cally submits that apart from recovery of register and parallel set of invoices belonging to Ram Containers, bill book was also recovered from the appellant premises. He also submits that information retrieved from the said seized documents clearly indicate that entries in said book pertain to the clearance of the tin containers manufactured by them. As regards the financial position, he submits that huge demand of more than Rs.3 crore is involved and as such the appellants need to be put to some terms of deposit. He submits that appellants having sold their factory after a period of about 3 to 4 years from the date of making out a case against them, reflects upon mala fide intention not to pay the dues in question. He submits that Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reflect the low income of the applicant as the consideration of clandestine clearance as never reflected in the statutory documents. We prima facie agree with the contention of ld. Jt. CDR that consideration received against clandestine activity never forms part of the statute reflecting income tax. 9. As such, by taking into account the overall facts and circumstances of the case including prima facie merits of case, we direct M/s Sardar Metal Industries to deposit an amount of Rs.50 lakhs (rupees fifty lakhs) as a condition of hearing of their appeals. The said deposit is required to be made within a period of twelve weeks from today. Subject to deposit of the above amount, pre-deposit of the balance amount of duty and entire amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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