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TMI Blog2017 (11) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... Anti Evasion visited the factory of RIL on 06.03.1998 and drawn the sample of Ferro Chrome the raw material and of billets the finish products to check the percentage of raw material. The factory was again visited by the officers on 01.02.1999 and resumed records and no discrepancy was found during these two visits. M/s. RIL manufacturing SS Flats from Billets by getting it rolled on job work basis and was clearing billets either on payment of duty or under Rule 57F of Central Excise Rules. The Revenue was of the view that RIL was consuming Ferro Chrome in excess hence, RIL have manufactured more quantity of billets/flats as against the quantity shown in record and cleared the same clandestinely without payment of duty. It was also found th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how Cause Notice as well as the impugned order, nothing is coming out that the appellant was involved in any illegal activity. He submits that the whole case is based upon the presumptions and assumptions and the demand against M/s. RIL was made out only on the basis of excess consumption of one of the raw materials i.e. Ferro Chrome and it has not been established that from where the other raw materials were procured and the production capacity of M/s. RIL so as to allege the excess manufactured finished goods and clearance thereof clandestinely. It was also alleged that income from commission is shown to adjust the cash generated by clandestinely cleared goods. It is his submission that all the persons who paid commission to M/s. RIL has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) Mukund Limited Vs. CCE - 2007 (218) ELT 120 (Tri.) (e) MEK Soltted Angles (1) Limited Vs. CCE - 2009 (247) ELT 364 (Tri.) (f) Indo Green Textile Pvt. Ltd Vs. CCE - 343 (Tri.) (g) CCE Vs. Lovely Offset Printers Pvt. Limited - ELT 305 (Tri.) (h) CCE Vs. Shreeji Engineering Works - 2017 (348) ELT 711 (Tri.) He also submits that a case against M/s. RIL was made out for demanding service tax on the commission earned, in that circumstance, it cannot be alleged that the commission earned is the sale proceeds of clandestinely removed goods. It seems that the department itself is confused whether the amount received is towards the sale proceed of clandestinely manufactured and removed goods or towards the commission on which service tax is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the time evasive in his reply and expressed his inability to comment on the confessional statements of various persons in this regard." On the basis of the said statement, it was alleged that the appellant was responsible for his conduct to the business at the material time and the goods cleared from the factory without payment of appropriate excise duty is with his consent and connivance. Hence, the penalty was imposed under section 209A of Central Excise Act, 1944. 7. I find that in this case, the demand sought to be confirmed against RIL on the basis of the input namely, Ferro Chrome as shown used in excess for manufacture of final goods which has been found after the test reports wherein it has been reflected that Ferro Chrome is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible person is liable to penalty under Rule 209A of the Central Excise Rules without discussing his role, hence the personal penalty on Shri Manoj M. Somani, Managing Director is set aside. The appeals are disposed of as indicated above." Further, I find that in the case of A.K Tantia (supra), this Tribunal further observed that :- "4. I have considered the submissions of both the sides. The Revenue has not brought any material on record to connect the appellant with the illegal activities going on in the company for evasion of Central Excise duty. Shri Prem Shankar Gupta had connection with Sh. A.K. Tantia only to the extent of production pattern and not to the extent of clearance pattern of the goods from the factory. It is settled law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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