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TMI Blog2018 (1) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... (both Revenue and assessee) are having sufficient force to persuade us to hold that the impugned order as it stands cannot be sustained - the Original Authority has to be directed to examine the whole case afresh in order to arrive at a categorical, consistent finding on the basis of available evidences and the submissions made by all the parties in the dispute. Adequate opportunities shall be provided to the appellants/assessee to submit their side of the case. Revenue’s grievance regarding inconsistent appreciation of factual and legal basis of the allegation in the notice also requires consideration. The case remanded back to the Original Authority who shall examine the evidences afresh for a decision - appeal allowed by way of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anded central excise duty of ₹ 7,33,29,882/- alongwith proposal to impose various penalties on different noticees. The noticees filed their defence submissions. The Original Authority after examining the case details and defence submissions adjudicated the case resulting in the impugned order dated 30/09/2015. 2. The Original Authority held that M/s Gopal Corporation Limited created three front units namely M/s Shree Balaji Enterprises, M/s V.L. Enterprises and M/s Golden Leaf and availed ineligible SSI exemption in contravention of Notification 8/2003 dated 01/03/2003. He confirmed duty liability of ₹ 68,89,992/- on this account. He imposed penalty equal to this amount on M/s Gopal Corporation Limited; ₹ 23,93,783/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagement, common manufacturing facility/premises. Each one of them have their own income tax registration and PAN number, VAT registration, separate list of employees, ESI number and separate books of accounts. There is no evidence of financial flow back, loan availment, sale or purchase, inter-se, of any goods. There is no sharing of profit, common purchase of raw material, packing material or any common arrangement for such procurement. Similarly, there is no common transaction for sale of finished goods. The same is not done by one on behalf of another. To sum up, the learned Counsel strongly contended that there is no evidence in law or fact warranting clubbing the clearances of one unit with another. 4. The learned Counsel further s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, M/s Bhumika Perfumers were either relative of Shri Gopal Gupta or Shri S.K. Agarwal or otherwise connected with them closely. All the 9 manufacturing units were procuring all the raw materials from the same suppliers as per the directions of M/s Gopal Corporation Limited. The arrangement for purchase of raw material and sale of finished goods as unearthed during investigation clearly reveals that the units which are purported to be independent legal entities are nothing but front companies acting as dummies in order to split up the turnover. All these units were acting to further the profit of M/s Gopal Corporation Limited. 6. Elaborating the grounds of appeal by the Revenue, the learned AR submitted that the finding of the Original A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the noticees. Even in the discussion and finding which starts somewhere in page 281 of this order, again repetition of allegations and defence submissions on such allegation were recorded. The findings on some of the crucial aspects regarding the factual and legal status of these 9 units were in fact contradictory. After analyzing the documents referred to in the show cause notice, the impugned order (at para 74.6) holds that from the evaluation of relied upon documents it is apparent that these documents fall short of culling out any inference towards the allegation of commonality leveled in the show cause notice. No other documentary evidence of financial transaction or any other evidence reflecting a commonality between GCL and the rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility to put up a defence to counter the accusations, the confessional statement of the noticee becomes relevant under the circumstances of the case rendering it a vital piece of evidence . 9. One important thing that emerges on examination of the impugned order is inconsistent appreciation of similar set of evidences by the Original Authority. At one place, he records that confessional statement which remained un-retracted till the issue of notice shall form an evidence. In other place, he concludes that the evidences produced by some of the units will have primacy over the un-retracted confessional statement. We note that relying on certain sporadic documentary evidences, the Original Authority discounted the un-retracted confessional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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