9911796707
TMI Blog2008 (4) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 3712 by M/s Kobe Suspension Co. Pvt. Ltd. are as follows :- (a) The appellant is a manufacturer of Steel leaf springs who the supply the products to various State Government Transport Undertakings. (b) The various State Government Transport Undertakings have a nodal agency known as ASTRU who notify the rates and quality for leaf springs to be supplied to various State Government Undertakings. ASTRU approves the sources of raw materials and their prices. For this purpose, the appellant as a manufacturer of leaf springs was required to file periodical returns to ASTRU about their sources of procurement of raw materials and the prices at which the raw materials were purchased from the approved sources. (c) The returns submitted to ASTRU by appellant was certified by the Chartered Accountant and also signed by M.D. of the company Shri Uberoi. (d) The officers of DGCEI conducted a search of the factory premises of the appellant and other connected premises on 29/06/2000. They also recovered from ASTRU copies of invoices issued by M/s Star Wire India Ltd., Faridabad, M/s Sun Flag Iron & Steel Co. Ltd., Bandra, M/s Modern Steel Ltd., Govindgarh and M/s Marmagoa Steel Ltd. On co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned advocate Shri J.P. Kaushik, on behalf of M/s Kobe Suspension Co. Pvt. Ltd. submitted the following :- (a) The demand against M/s Kobe Suspension Co. Pvt. Ltd. is based on returns submitted by them to ASTRU. The invoices submitted by them to ASTRU were manipulated ones. They were not related to actual purchase of raw materials from the said parties. The quantity, the value and the date of invoice were manipulated with a view to get an inflated price for their supply of final products to the various transport companies. (b) He submits that based on the same investigation show cause notices were issued alleging clandestine removal in respect of M/s Sun Flag Iron & Steel Ltd., M/s Star Wire (I) Ltd., M/s Modern Steel Ltd. and the appellant was a co-noticee in the said proceedings. The Commissioners (Appeals) in whose jurisdiction three units fall have held that the allegations of clandestine removal by the said units were not sustainable. In fact, in respect of M/s Sun Flag Iron & Steel Ltd., the Tribunal vide their order No. A/899-901/C-IV/SMB/2007 dated 27/06/07 has upheld the order of the Commissioner (Appeals) which was favorable to the parties. He submits that in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. themselves were selling the product and the average price and average weight were available, the same should have been adopted. The allegation that they were manufacturing with the brand name of Fantum was not substantiated. (e) If duty demand is confirmed against M/s Kavantry Springs Fabrication Co. then the benefit of Cenvat credit on the raw materials which has been used in the manufacture of such springs should be granted to them. The sale value of M/s Kavantry Springs Fabrication Co. should be treated as cum duty price and demand should be re-worked. 8. Learned D.R. in respect of M/s Kobe Suspension Co. Pvt. Ltd. submits that notwithstanding dropping of proceedings against three of the suppliers, the findings of the Commissioner against them is based on other evidence such as shortage of raw materials, shortage of finished goods at the time of commencement of investigation, private documents indicating unaccounted clearance of finished goods and admission statements of some of the dealers indicating that the goods have been received without bills and on payment of cash. 9. As regards, M/s Kavantry Springs Fabrication Co. he submits that the delivery challans under which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they have sent materials to a job worker and got finished goods and traded them. We are unable to accept that M/s Kavantry Springs Fabrication Co. have sent under the delivery challans to the job worker only the raw materials and the details regarding the number and variety of leaf springs mentioned in such delivery challans were basically in the nature of orders placed for the final product. We have carefully examined the delivery challans which are basically meant for sending goods specified therein and to get acknowledgment for receipt of the same from the recipient's end. The claim that it specified the end product sought to be manufactured out of the materials send by them appears to be an after thought. The amount indicated as job charges also admittedly do not correspond to charges payable for full-fledged manufacture as claimed by the appellants. When Shri Kulbir Singh Oberoi was asked about sending to M/s V. Jai Auto Industries for heat treatment is vague and does not deny that the goods have been sent only for heat treatment. On the other hand the representative of M/s V. Jai Auto Industries has clearly stated that they have done only heat treatment. We hold that M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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