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TMI Blog2010 (8) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... r statement of Shri Veeramuthu Pillai dated 8-6-2001 which stands generally corroborated by various letters addressed by him to the Central Excise authorities. The plea that the unaccounted clearances related to unbranded goods which were manufactured in the houses of the employees, in the given facts and circumstance, is clearly an afterthought. As already mentioned the various letters by Shri Veeramuthu Pillai was only to extricate him of the charge of prior knowledge of clandestine activity in his firm and inasmuch as no separate penalty has been imposed on him, this issue need not be further dealt with. As it is a clear case of unaccounted and clandestine removal which stands admitted, invocation of extended period of limitation and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout accounting and without payment of duty. They stated that super deluxe and deluxe brand of chewing tobacco which were manufactured in the factory were cleared without payment of duty. Such quantities have been entered in blue ink as against accounted production and clearances which were in red ink. 2.2 On 9-6-2001, the Manager and the Accountant have retracted the statements; they did not deny that there was clandestine manufacture and clearance but claimed that the partner Shri Veeramuthu Pillai was not aware of such manufacture and clearance. Shri Veeramuthu Pillai had sent several communications dated 11-6-2001, 13-6-2001, 24-6-2001, 30-6-2001, 31-7-2001 and 8-8-2001. In his letter dated 11-6-2001 he claimed that he was shocked af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igation Manual. The format of the summons is not proper as it contained threats like you are not to leave the said premises/offices without leave and if the case is adjourned, without ascertaining the date of adjournment . (b) Show Cause Notice was said to have been issued after prior approval of the Additional Director-General of Central Excise Intelligence but no evidence in this regard has been produced in spite of repeatedly requesting for the same. (c) Show Cause Notice has been issued without investigating the veracity of documents submitted by the appellants to the investigators. (d) Show Cause Notice has been issued after lapse of more than one year from the date of commencement of the investigation and therefore th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M. Sundararajan and M. Chandra Mohan without taking into account the retractions filed by them. 4. Learned SDR submits that the private records were seized from the premises of the appellant-firm in the presence of independent witnesses. Shri Veeramuthu Pillai, the partner in his first statement has admitted to the unaccounted production and clandestine removal including prior knowledge of the activities. The retractions of the two employees were to the effect that their partner was not involved in the clandestine activities and that they have done on their own. Such a claim appears to be to save the partner at the instance of the appellant-firm. He also submits that admitted facts need not be proved. He also submits that the claim by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing tobacco manufactured in their company had been put into sale, without paying central excise duty, to the tune of Rs. 3.50 lakhs. He, in his statement, has categorically stated that he came to know that the tax evasion was to the tune of Rs. 1,40,093/-. His subsequent letters are merely aimed at wriggling out of his first statement admitting his prior knowledge of the clandestine activities. In other words, in various letters dated 11-6-2001, 13-6-2001, 24-6-2001, 31-7-2001 and 8-8-2001 he has not refuted this basic confessions on suppression of production and clandestine removal. The emphasis has been to portray that Shri M. Sundararajan and M. Chandra Mohan have not been loyal to him and to the firm. Surprisingly, in the retraction let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use the defence statements were not accepted by the lower authorities it cannot be said there is violation of principles of natural justice in not considering the documents submitted by the appellants. The authorities have relied upon the private records maintained by the appellant-firm corroborated by the initial statements of Manager, the Accountant and also a Partner and further letters submitted by the said partner himself. No valid defence has been produced before them to contradict the earlier statement of Shri Veeramuthu Pillai dated 8-6-2001 which stands generally corroborated by various letters addressed by him to the Central Excise authorities. The plea that the unaccounted clearances related to unbranded goods which were manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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