Rajesh Bindal, J. - (1.) THIS order will dispose of the above mentioned four appeals, as common questions of law and facts are involved.
(2.) THE facts have been extracted from CEA No. 28 of 2005. The revenue is in appeal against the order dated 11 -6 -2004, passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for short, 'the Tribunal') in Appeal No. E/505/03 -NB (SM) raising the following substantial question of law: Whether non -invoking/quoting of extended period of limitation and by not quoting the relevant section or rule vitiates the proposed action when the charges of fraud practiced and suppression of facts resorted to by the party in wrong availment of Modvat credit have been discussed clearly in detail in the show -cause notice ?
(3.) BRIEFLY , the facts are that a show -cause notices were issued to the respondent -assessees in all the aforesaid four appeals on 17 -6 -1999 with the allegations that they have contravened the provisions of rules 57A and 57G of the Central Excise Rules, 1944 (for short, 'the Rules') for having fraudulently availed Modvat credit to the tune of lakhs of rupees. The fraud came to the notice of the department during the course of inspection. On 22 -7 -1998, search was conducted on the premises of M/s. Shobhit Impex, Abohar, M/s. Gandhi Chemfert Industries, Old Fazilka Road, Abohar and M/s. Gandhi Metal (P.) Ltd., Old Fazilka Road, Abohar on 23 -7 -1998. It was found that M/s. Shobhit Impex had a godown located at Chak Sidhu Complex, Malout Road, Abohar of the size of 12 feet X 18 feet where large quantity of imported copper scrap was claimed to have been stored. Statements of various persons were recorded. Surinder Kamra, Proprietor of M/s. Kamara Traders, who was also having a godown space at Chak Sidhu Complex, in his statement recorded on 23 -7 -1998 stated he never saw any movement of goods in the godown of M/s. Shobhit Impex. Similar were the statements of Ashwani Kumar and Mangat Ram. Even Om Parkash Gandhi, General Power of Attorney holder of M/s. Shobhit Impex also admitted in his statement that the godown as such was never used for bringing and disposing of the imported goods. The same were directly disposed of from the ports. He further admitted that G.R. in respect of movement of goods from Abohar to buyer's destination was issued by him on the blank G.Rs. handed over to him by the proprietor. Show -cause notice was issued with the clear allegation of fraudulently availing of the Modvat credit by the respondent -assessees. The Commissioner, adjudicating authority, vide order dated 21 -11 -2002 raised the demand and imposed penalty on the assessees. Relevant part of the order of the Commissioner is extracted below: I confirm the demand of Central Excise duty detailed in the cited show -cause notice in respect of following noticees and order the adjustments of amount paid by them against the confirmed demand of Central Excise duty as detailed hereunder and also order its recovery under rule 9(2) read with Rule 57 -I(1) of Central Excise Rules, 1944 and Section 11A of Central Excise Act, 1944: Sr. No. Name of the party Amount of duty Amount of duty Balance (M/s.) confirmed as already amount of per show -cause reversed (Rs.) Central Excise notice (Rs.) duty payable (Rs.)1. Leader Engg. 3,94,502.00 2,59,789.00 Nil Works, Jalandhar .. .. .. 3. Vardhman India 57,119.78 57,119.78 Nil Products, Jalandhar .. .. .. 6. Aman Engg. 61,527.00 61,527.00 Nil Works, Jalandhar .. .. .. 12. V.K. Valves (P.) 43,746.00 43,746.00 Nil Ltd., Jalandhar. .. .. ..;