9911796707
TMI Blog2019 (2) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... held the same could not be sold in an unaccounted manner. Even though the Revenue has contested that the transactions at Chandigarh were with the related parties of assessee but none of those related parties have been made a party to the proceedings. Apart from the bare allegations, there is not even an iota of evidence to show as to how such huge quantity of raw material was transported from Chandigarh to Sahibabad and as to how the final product allegedly manufactured at Sahibabad were transported to Chandigarh in a clandestine manner. Apart from the fact that the Revenue has not produced any evidence to show engagement of such a huge number of trucks by the assessee, we also note that at no point of time even a single truck was ever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terials for the manufacture of their finished products were Hot Rolled Coils and Zinc purchased from various manufacturer. The party was selling their finished goods directly from the factory as well as through depots/branches situated at different places in the country, among others, from their Chandigarh depot/Branch situated at 3, Industrial Area, Chandigarh, which was registered as a dealer vide Central Excise Registration No.195/D/CH/72-73 84/R-I/CH-95 under the jurisdiction of Commissionerate of Central Excise, Chandigarh. 4. Acting on the intelligence that M/s. BSSL, Sahibabad had been evading Central Excise duty on the excisable products manufactured in their factory premises at Sahibabad by way of clandestine removal and und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without payment of duty from M/s.BSSL, Sahibabad and shown under the head Trading in the Tax Audit Report and as a trading activity between M/s.BSSL, Chandigarh and group companies and within the group companies also, was a false presentation of the facts of these goods were sold to the independent buyers. On the basis of the documents/records resumed during the course of searches at different places: statements of various persons were recorded, and follow-up enquiries investigations were conducted, resulting in the show cause notice wherein as referred here-in-above alleging that M/s.BSSL, Sahibabad evaded Central Excise duty to the tune of ₹ 14,57,96,702/- payable on production and clearance of finished excisable goods allege ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... andigarh depot. I have carefully examined and considered the submissions made by the party on this vital issue and also perused the records. It is on record that as a part of trading activity M/s. BSSL s Chandigarh depot during the disputed period purchased the material i.e. CR Coils/CR Sheets/GP Sheets as per description available in the sales invoices issued by the seven group companies in their favour and made payments to these companies. It is not disputed that goods were not purchased or payments were not made or were outstanding. It is also on record and not disputed that M/s. BSSL s Chandigarh depot made the payments for the price of CR Coils/CR Sheets/GP Sheets shown to be sold in the sales invoices of group companies and which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such Cold rolled products from the factory to their Chandigarh depot. In absence of any supportive evidence whether oral or corroborative or otherwise, I do not find any case of clandestine removal of excisable goods by the party from their factory at Sahibabad as alleged in the present show cause notice. The adjudicating authority after analyzing the facts of the case and considering the defence arguments, held in In absence of any positive evidence brought on record in the present show cause notice as discussed above, the charge of clandestine manufacture and removal is not sustainable. The adjudicating authority further held In absence of any proved case of willful suppression of facts or contravention of the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Chandigarh to Sahibabad and as to how the final product allegedly manufactured at Sahibabad were transported to Chandigarh in a clandestine manner. The value of the goods alleged to be clandestinely removed from Sahibabad factory is around ₹ 100 crores involving 40,000 MT of products. The transport of to and fro Chandigarh would be around 80,000 MT requiring around 8,000 trucks. Apart from the fact that the Revenue has not produced any evidence to show engagement of such a huge number of trucks by the assessee, we also note that at no point of time even a single truck was ever intercepted by the Revenue. Further, during the relevant period the entry of goods in the State of Uttar Pradesh was to be accompanied with Form 31 issued b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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