2017 (5) TMI 755

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..... s of the contraventions of law of Central Excise of the appellant M/s Jagdamba making them liable for penalty under the provisions of Rule 26 of CER 2002 - penalty upheld - appeal dismissed - decided against appellant.
Dr. D. M. Misra, Member (Judicial) And Mr. Ashok K. Arya, Member (Technical) For Appellant : None For Respondent : Shri N. Satwani, A.R. ORDER Per: Ashok K. Arya M/s Jagdamba Dyeing & Printing Mills Pvt. Ltd (M/s Jagdamba) is in appeal against OIO No.03/MP/2007, dt.31.10.2007, passed by Commissioner, C.Ex. & S.Tax, Surat-II, where under penalty of ₹ 10 lakhs has been imposed on them under Rule 26 of Central Excise Rules 2002. 2. Brief facts are that:- i) M/s Akai Fashions (M/s Akai) was engaged in the manufac .....

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..... nd others; when there has been no manufacturing activity carried out by M/s Akai, huge amount of inadmissible CENVAT Credit (of ₹ 51,70,589/-) was wrongly availed. vi) The statement of Director of M/s Jagdamba Shri Ramprasad B. Jhavar was also recorded on 20.03.2006 indicating that there was no correlation between the grey fabrics purportedly purchased by M/s Akai and the fabrics processed by M/s Jagdamba on job work basis for M/s Akai. The Show Cause Notice charged that there did not appear to have any correlation between the processed fabrics purportedly cleared by the appellant M/s Jagdamba and scarfs/dupattas etc cleared for export by M/s Akai. v) The Show Cause Notice issued to M/s Akai and M/s Jagdamba along with others als .....

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..... ave got illegal and undue benefits. From the record, we find that the statement of the Director of the appellant company Shri Ramprasad B. Jhawar corroborates the charges against the appellant proving that there was no correlation between the grey fabrics purportedly purchased by the main noticee, M/s Akai Fashion and the fabrics processed by the appellant M/s Jagdamba on job work basis for M/s Akai. Further, there is no correlation found between the processed fabrics purportedly cleared by the appellant, M/s Jagdamba and the goods viz. scarfs/dupattas etc cleared for export by M/s Akai. 4.1 There are no redeeming facts which could in any way reduce the gravity and seriousness of the contraventions of law of Central Excise of the appellant .....

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