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TMI Blog2019 (6) TMI 1316X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s Deepak Industries. Appeal allowed - decided in favor of appellant. - Excise Appeal No. 51686-51687 of 2017 - FINALORDER Nos. 50813 – 50814/2019 - Dated:- 26-6-2019 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) AND MR. BIJAY KUMAR, MEMBER (TECHNICAL) Shri Krishnamohan Menon, Advocate for the appellant Shri R. K. Mishra, Authorised Representative for the respondent ORDER The appellant company M/s M. M. Industries Pvt. Limited is located at New Airport Road, Raipur and engaged in manufacturing of H.B. wire and welded wire mesh/ hexagonal wire mesh and registered with the Central Excise Department since 2007-08. They have been availing SSI exemption till 2013-14. Thereafter the appellant have been paying duty and also filing their returns regularly. 2. The main raw material of the appellant is binding wire mesh and H.B. wire. The other appellant Shri M. S. Mukim is the Director. 3. These appellants purchase their raw material from various manufacturers including M/s Deepak Industries who are manufacturers of binding wire and H.B. wire and are registered with the Department of Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o various customers on cash basis and same is noted in the said diary. The entries made in the diary mention the name of the customer, material, size, ordered quantity and rate per M.T. of finished goods. In the diary the name of the present appellant was also found at some places. Further, from scrutiny of the seized note pad RUD-8 for past period maintained by Shri Ravinder Singh, revealed that in the said note pad the datewise order executed are mentioned. Some of the entries in the note pad tallied with pencil ledger RUD-4 . From weighment slip which were also found and seized for the part period only, RUD-9 . From scrutiny of the weighment slip it was seen that the quantity mentioned in the slip found to be tallied with the quantity mentioned in the manual pencil ledger. 6. The Officers based on the entries in the pencil ledger which was not properly legible, got prepared the computerised extract. Based on such investigation and documents recovered from the premises of M/s Deepak Industries, a follow up search was done in the premises of M/s M. M. Industries Pvt. Limited on 10.12.2013 and some documents were seized under panchnama. The appellant furnished soft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 1.5 crore under Notification No. 8/2003 (SSI exemption), upto the year 2012-13 and thereafter not claimed. Further, on correlation of clearances of H.B. wire by M/s Deepak Industries to this appellant M/s M. M. Industries Pvt. Limited, as shown in pencil written ledger, it was seen that duty on total quantity of 2090.615 M.T. of H.B. wire, only in respect of quantity of 108.420 M.T. corresponding Central Excise invoices are available. It appeared to Revenue that as for the remaining quantity of 1982.195 M.T., corresponding invoices for duty payment are not available in the record of M/s Deepak Industries, and further it appeared that such quantity was also not accounted for by this appellant. Further, such unaccounted quantity of H.B. wire was received and utilised by the appellant for manufacture and clearance of unaccounted welded wire mesh. Further, Revenue worked out yield of 96% and accordingly estimated that this appellant had manufactured 190.900 MT of unaccounted welded wire mesh and cleared the same from February, 2011 to May, 2013, as per the calculation in Annexure IV-D to the show cause notice. Further, some quantity allegedly cleared of finished goods was also work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice of M/s Deepak Industries. Further, the statement given by Mr. Ravinder Singh, Prop. of M/s Deepak Industries has also been found to be not admissible under Section 9D of the Act. Thus, the demand raised against this appellant also stand vitiated in view of the finding in the appeal of M/s Deepak Industries. For reference we quote para 7: 7. Having considered the rival contention and on perusal of records, we find that the demand is mainly based upon the handwritten pencil ledgers seized by the Revenue. Since the ledgers are not legible, the details were prepared on computer and relying upon the same a computerised chart viz. RUD 4 Show Cause Notice has been prepared for raising demand against Appellant Unit. In the show cause notice, the adjudicating authority have relied upon the aforesaid documents and statement of Shri Ravindra Singh, wherein he has accepted the above document. We find that Shri Ravindra Singh in his cross-examination dated 8.9.2016 has refused to accept that the RUD-4 contains clearances without payment of duty. Further, he has also stated in his cross-examination that his statement were obtained against his will and upon threat. In such a c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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