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TMI Blog2014 (10) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... compliance to this direction, realisation of the balance of amount of duty of ₹ 4,39,10,915/- followed by interest on the duty as well as penalty shall remained stayed during the pendency of the appeal. - Application Nos. E/Stay/4824-4829/2012 in Appeal Nos. E/3823-3828/2012 - Stay Order Nos. SO/53389-53394/2014-EX(DB) - Dated:- 9-10-2014 - Shri D.N. Panda, Member (J) and Manmohan Singh, Member (T) Shri Pankaj Bhatia and Rupesh Kumar, Advocates, for the Appellant. Shri V.P. Batra, DR, for the Respondent. ORDER [Order per : Manmohan Singh, Member (T).]. - The appellants have come up in appeal along with six stay applications against the Order-in-Original No. 05/D-I/2012, dated 30-8-2012 passed by CCE, New Delhi. The Commissioner has confirmed the demand of Central Excise Duty amounting to ₹ 9,39,10,915/- (Rs. Nine Crores Thirty Nine Lakhs Ten Thousand Nine Hundred and Fifteen only) on M/s. KPPPL. The C.C.E. has also imposed following penalties on other appellants - (1) Rajendra Prasad Tripathi, Director ₹ 1 Crore (2) Rajendra Kumar Gaur, Director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s presented to the Railway authorities at CSTM, Mumbai for unloading of the consignment revealed that a consignment of 55 Gunny bags was booked on 28-2-2007 from New Delhi in a leased brake van of Punjab Mail which was managed by M/s. Om Shanti Logistic Services P. Ltd., Mumbai. The said 55 Gunny Bags on examination were found to contain Rajshree brand Gutkha containing 10,09,800 pouches of Rajshree Brand Gutkha valued at ₹ 10,09,800/- (MRP @ Re. 1/- per pouch) which was later on seized, at the office of the Chief Parcel Supervisor at Wadi Bunder. The 55 Gunny Bags contained packets which had K.P. Rajshree Gutkha printed in Hindi and Quantity 60 Pouches , Mfd. by K.P. Pouches P. Ltd., New Delhi-15 and R.C. No. AABCK6527AXM001 printed in English and on the pouches; K.P. Rajshree Gutkha Mfd. by K.P. Pouches P. Ltd., New Delhi-15 was printed. Follow up action at the factory premises of M/s. KPPPL located at 46, Rama Road, New Delhi-110015 resulted into seizure of unaccounted finished goods viz. 481195 Pouches of Safal brand Gutkha (MRP @ Re. 1/- per pouch) valued at ₹ 481195/- and 8,65,620 pouches of Rajshree brand Gutkha (MRP @ Re. 1/- per pouch) val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elephone (011-25175026/25888020) with Mr. Tripathi/Pankaj (the accounts staff) of M/s. KPPPL; that Gutkha was received by them via Road through Jaipur Golden Transport/United Carriers and sometimes through railway and their carting agent was SMCFA, CST, Mumbai. (c) Statements of Shri Seva Ram Giri were recorded on 28-2-2007 20-3-2007 wherein, inter alia, he deposed that he worked for Shri Pannalal Jain who paid him ₹ 15000/- p.m.; that Shri Pannalal, whose office was situated at Chira Bazaar, was the main dealer of Rajshree Gutkha; that Rajshree brand Gutkha was transported from Delhi to Mumbai by Punjab Mail and the Gutkha was received 5-6 days in a week; that no Central Excise Invoices ever accompanied the goods from Delhi; that the entries made in the register resumed from the premises of M/s. Murugan Clearing and Forwarding indicated his name against 2138 UP and figures mentioned therein pertained to the No. of packages of Gutkha which had arrived by Train No. 2138 Punjab Mail and the No. of packages unloaded at CSTM and received by him; that such entries were in various registers maintained monthwise; that all the packages of Gutkha mentioned in the various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by M/s. KPPPL, New Delhi without paying appropriate Central Excise duty was intercepted on 14-8-2007 at Mumbai Central Railway Station consisting in all 40 Gunny Bags having the following markings BPL 4554 P-90 IND BC . On examination, the 40 gunny bags were found to contain plastic (Transparent) bags which contained Gutkha in Pouches printed KP Rajshree Gutkha (in Hindi), Brand Owner Kamla Kant and Co. Kanpur, Mfd. by K.P. Pouches (Pvt.) Ltd., New Delhi-15, Registration Certificate No. AABCK6527 A XM001 Batch No. C-56 and Pkd. 03/07 containing 7,34,400 Pouches valued at ₹ 7,34,400/- (MRP @ Re. 1/- per pouch) were consequently seized having been cleared without payment of appropriate Central Excise duty. Earlier 20 bags of same marking BPL 4554 P-90 IND BC and KP Rajshree Gutkha (in Hindi), Brand Owner Kamla Kant and Co. Kanpur, Mfd by K.P. Pouches (Pvt.) Ltd., New Delhi-15 and Registration Certificate No. AABCK6527 A XM001 containing 3,67,200 pouches valued at ₹ 3,67,200/- @ Rs. One (Rupee one only) per pouch were seized. In follow up action, Shri Mohamed Yusuf Yakub Supariwala, Partner, M/s. Barkat Traders, in his statement on 14-8-2007 that whenever h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o ₹ 9,39,10.915/- as detailed in Annexure A to the SCN. Investigation clearly brought out that M/s. KPPL were involved in huge evasion of Central Excise duty by suppressing of production of gutkha clandestinely removing the same to M/s. K.P. Marketing. The fact and evidence available on record indicated that M/s. KPPL clandestinely removed 15196 kgs. of Rajshree gutkha containing 27,89,98,560 pouches valued at ₹ 27,89,98,560/- during December, 2005 to February, 2007 to M/s. K.P. Marketing evading Central Excise duty amounting to ₹ 9,39,10,915/-. 14. Shri Pankaj Bhatia, ld. Advocate appearing on behalf of M/s. K.P. Pouches Pvt. Ltd. and its Director Rajendra Prasad Tripathi and Shri Panna Lal Shyam Sukla (Jain), proprietor of M/s. K.P. Marketing contended that entire demand has been made on the basis of records maintained by Shri Murgan Clearing and Forwarding Agency who is Railway clearing agent. He also pointed out that in the proceedings under consideration, person named Shri Giri has been considered as employee of the dealer M/s. K.P. Pouches Pvt. Ltd., Delhi whose name figured in the records of clearing and forwarding agents. On the basis of his name, depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sive proof. 17. On behalf of Shri Panna Lal Shyam Sukla (Jain), Counsel submitted that Shri Panna Lal Shyam Sukla (Jain) was receiving Rajshree brand gutkha on payment of duty through goods transport service and there was no evidence to establish that Railway van was booked by him. Neither there was any proof of payment charges to Om Shanti Logistics Pvt. Ltd./GTM and Shri Murgan Clearing and Forwarding Agency. In this case also, plea was made that Giri was not employee of Shri Panna Lal Shyam Sukla nor he was produced for cross-examination. 18. Shri Rupesh Kumar, ld. Advocate appearing on behalf of Kamalkant Co. and Shashikant Chaurasia contested the claim of the department regarding involvement of Kamalkant Co. in the alleged clandestine manufacture and removal of gutkha by M/s. K.P. Pouches Pvt. Ltd. No evidence has been brought on record by the department to specifically point out involvement of Kamalkant Co. and Shashikant Chaurasia. 19. Regarding imposition of penalty on Shashikant Chaurasia, under Rule 20, learned counsel pointed out that there was no evidence on record to establish that appellant had ever dealt with these goods with knowledge about their clan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured quantities. Follow up investigation led to resumption of various registers from the premises of M/s. SMCFA, manifests of M/s. OSLSPL/M/s. GMT and RG I Registers resumed from the premises of M/s. KPPPL manifested substantive clandestine clearance of Gutkha to stockist/C F agents. Similarly analysis of other notes books marked as Sr. Nos. 27, 28, 30, 35, 8, 3, 13, led to evasions of Central Excise duty as detailed in SCN. 24. All above investigations, statements and analysis of seized record led to calculation of evasion of Central Excise duty amounting to ₹ 9,39,10,915/- as detailed in Annexure A to the SCN. Investigation prima facie brought out that M/s. KPPPL were involved in huge evasion of Central Excise duty by suppressing of production of gutkha clandestinely removing the same to M/s. K.P. Marketing. The facts and evidence available on record indicated that M/s. KPPPL clandestinely removed 15196 kgs. of Rajshree gutkha containing 27,89,98,560 pouches valued at ₹ 27,89,98,560/- during December, 2005 to February, 2007 to M/s. K.P. Marketing evading Central Excise duty amounting to ₹ 9,39,10,915/-. 25. The material fact manifesting evasion of & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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