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TMI Blog2017 (5) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... s, whether the quantum of penalty imposed of Rs. 10 lakhs, is just and proper. 2. On the basis of intelligence that M/s Qualimax Electronics (P) Ltd. (for short' M/s QEPL') is registered with Central Excise Department for manufacture of Tyres Flaps on Excisable product, who were also doing job for M/s J.K. Tyres & Industries Ltd., that they had floated a firm namely; M/s Vikram Tyres, at Mehrauli, Delhi which was not registered with the Central Excise Department and was using the invoices of this firm to clandestinely clear the Tyres Flaps (Excisable product) manufactured by M/s QEPL. The office and factory of M/s QEPL and some other related premises were searched/investigated by Revenue on 23/07/2008 under Panchnama drawn at the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng invoice of M/s Vikram Tyres to M/s J.K. Tyres & Industries Ltd. were resumed alongwith other documents. The Revenue also obtained details of purchases made by the major buyers of M/s QEPL namely: M/s J.K. Tyres & Industries Ltd. & M/s Birla Tyres Ltd. and on the basis of those data it appeared that the Central Excise duty including Special Excise duty & Cess amounting to Rs. 5,66,75,487/- had been evaded during the period July, 2003 to November, 2007 on the Tyre Flaps which were cleared on the invoices of M/s Vikram Tyres. The said estimate of duty evaded was admitted by Mr. Pradip Gupta in his statement on 26/09/2008. Statement of Mr. Mohit Gupta son of Mr. Pradip Gupta was also recorded on 25/08/2008, wherein he stated that he was Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n black, Chemicals etc. under job work challans. M/s QEPL manufactures Tyre flaps from the raw material supplied by M/s J.K. Tyres & Industries Ltd., under job work challans and returns the rubber flaps to them on challans. No Central Excise duty was payable by M/s QEPL on the job work done by them for M/s J.K. Tyres & Industries Ltd. M/s QEPL was also manufacturing Tyre Flaps by purchasing raw materials from the market. Tyre Flaps, so manufactured required were cleared on their invoices issued in the name of M/s Agarwal Tyres, Delhi. No Excise duty was paid by M/s QEPL on such Rubber Flaps. As soon as the consignment of such Rubber Flaps crossed U.P. border into Delhi, the invoices issued by M/s QEPL in the name of M/s Agarwal Tyres were d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had made cash transactions and payments to various prominent suppliers against purchase of raw material. One, Shri Hari Babu Sharma, Proprietor of M/s National Cargo Movers stated that he used to get instructions from the appellants - Shri Sanjay Mittal for transport of Tyre Flaps cleared. 4. Based on such findings ld. Commissioner have held that the appellant Shri Sanjay Mittal is involved in evasion of duty and in this way he has dealt with the goods which were cleared without payment of duty liable to confiscation and as such is liable to penal action under Rule 26 of the Central Excise Rules, 2002. And accordingly, a penalty of Rs. 10 lakhs was imposed vide the impugned order. 5. The ld. Counsel, Shri Aalok Arora, appearing for the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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