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TMI Blog2005 (5) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... harma has not even been put to Sharma. No efforts have been made to ascertain work in process. The loom production reports RG 1 figures and assumptions made thereafter cannot sustain the charges and quantification armed at. From loom production to RG 1 stage there are number of steps of verification i.e. in folding/packing departments, which have been ignored or not found fault with, as Commissioner has ignored the submissions of the appellants made as regards stocks in process. No correlation with raw materials received and consumed has been brought out to substantiate the quantity of production. Demands made on assumptions and presumptions as in this case cannot be upheld. No material on record in appeal filed has been shown to be in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vla Road, Dist. Ahmedabad, Gujarat and MD is also alleged to be a subsidiary is situated as same address Shri K.K. Sharma is Vice-President (Commercial) of MDL MD and Shri R.K. Kalla is Executive Director of MDL. 1.4 The officers, acting on basis of an intelligence to the effect that MDL MD had been indulging in evasion of Central Excise Duty, searched the premises, rolls of Denim fabrics then recorded in the account of MDL MD i.e. 2209 Rolls measuring 153197 meters and 81857 linear meter respectively. Two separate notices were issued to MDL MD proposing confiscation of the seized goods as from the detailed enquiries made it appeared :- (i) MDL had not recorded for entire production of Grey Denim fabrics in stock registers. (ii) MD had reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t satisfactory. (vi) The value of 474506 meters of Denim removed at Rs. 75 plus 930612 meters removed clandestinely worked out at Rs. 35587950 Rs. 69795900 Value of Grey Denim of 1101721 meters undervalued of Rs. 71611865.00. (vii) The Concessional rate of duty to MDL for DTA removal was denied and they were required to pay Customs Duty amounting to Rs. 89117606 CVD of Rs. 26876933 and additional duty of Rs. 2262362 along with interest and the period of limitation under proviso to Section 11A(11) was invocable. (viii) Violation of Rules 100B; 100D 100E of Central Excise Rules was alleged and liability to penalty under Section 11AC was proposed. (ix) Shri K.K. Sharma, Vice-President Shri R.K. Kalla Executive Director were found to be aware o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , then on 24/25-10-96, when the Anti-Evasion Officers visited the premises of MD, it could not have been said or alleged and upheld or there were any reasons to conclude that machinery was not installed in MD premises to manufacture. Parwani's statement recorded on 25-10-96, is therefore false on record it cannot be relied. The jurisdictional officers certificate issued even after the search on 24/25-10-96, the statements speak about the reliability of the same. No jurisdictional officer, after search of a factory by Anti-Evasion officers will venture to issue a certificate, contrary to records. We rely more on the certificate of the jurisdictional Assistant Commissioner in-charge and the verification of the installation by the Range Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is lifting of seizure to be relevant and an appeal had been filed, will not call for acceptance of his interpretation. No material on record in appeal filed has been shown to be in favour of Commissioner's view. (d) Reading of Board's Circular 618/9/2002-CX. dtd. 13-2-2002 and the provision of Notification 125/84-CX. would indicate that the fabrics beyond the quota of DTA, allowed to be sold in India would be and should be levied to duty under the main Section 3(1) of the Central Excise Act, 1944 and that would grant the benefit of exemption of full duty of Excise as levied. Benefit under Notification 174/84-C.E. dtd. 26-5-84 granting exemption from Additional Duty of Excise (Goods of Special Importance) Act would be also available. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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