SHRI KRISHNA INDUSTRIES AND ORS. Vs. COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX
LAWS(CE)-2015-1-110
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on January 09,2015

Shri Krishna Industries And Ors. Appellant
VERSUS
Commissioner Of Central Excise And Service Tax Respondents


Referred Judgements :-

COLLECTOR OF CENTRAL EXCISE V. KERALA STATE ELECTRICITY BOARD [REFERRED TO]
ESSVEE POLYMERS P. LTD. V. CCE [REFERRED TO]
CCE V. LAXMI ENGINEERING WORKS [REFERRED TO]
VISHWA TRADERS P. LTD. V. CCE [REFERRED TO]
CCE V. PUSHPANJALI STEEL ALLOYS P. LTD. [REFERRED TO]
VIKRAM CEMENT P. LTD. V. CCE [REFERRED TO]
KUBER TOBACCO PRODUCTS LTD. V. CCE [REFERRED TO]
PAN PARAG INDIA LTD. V. CCE [REFERRED TO]
COMMISSIONER V. VIKRAM CEMENT P. LTD. [REFERRED TO]
COMMISSIONER CENTRAL EXCISE CUSTOMS AND SERVICE TAX VS. VISHWA TRADERS P LIMITED [REFERRED TO]
TGL POSHAK CORPORATION AND COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE HYDERABAD VS. COMMISSIONER OF CENTRAL EXCISE HYDERABAD AND TGL POSHAK CORPORATION [REFERRED TO]
ASSOCIATED CYLINDER INDUSTRIES LTD VS. COLLECTOR OF C EX [REFERRED TO]
M T K GURUSAMY VS. COMMISSIONER OF CENTRAL EXCISE [REFERRED TO]
SHARADHA FORGE PVT LTD VS. COMMISSIONER OF CENTRAL EXCISE [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE VS. BRIMS PRODUCTS [REFERRED TO]
ARCH PHARMALABS LIMITED VS. COMMISSIONER OF C. EX., HYDERABAD [REFERRED TO]
PRATIBHA SILK MILLS VS. COLLECTOR OF CENTRAL EXCISE [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE VS. RAMAN ISPAT (P) LTD. [REFERRED TO]
LEATHER CHEMICALS AND INDUSTRIES VS. COLLECTOR OF CENTRAL EXCISE [REFERRED TO]
KERALA STATE ELECTRICITY BOARD VS. COLLECTOR OF CENTRAL EXCISE [REFERRED TO]
CCE VS. DHANAVILAS (MADRAS) SNUFF CO. [REFERRED TO]
S.T. TEXTURISER AND SHRI ASLAM VS. COMMISSIONER OF CENTRAL EXCISE [REFERRED TO]
HIMALAYA DRUG COMPANY AND DR. VS. CCE [REFERRED TO]


JUDGEMENT

M.V. Ravindran, J. - (1.)THE appeals involved herein being arisen out of common investigation are being disposed of by a common order. Appeal Nos. E/985/2007 to E/987/2007, has arisen out of Order -in -Appeal Nos. 59 to 63/2007(Ahd -III) CE/KRB/Commr. (A), dated July 20, 2007 wherein duty demand of Rs. 18,64,103 has been confirmed against M/s. Shri Krishna Industries, Vadu and equivalent penalty. Further, a penalty of Rs. 1,00,000 each was imposed upon Shri Hitesh H. Parekh, partner of M/s. Giriraj Sales Agency, Morbi and Ramesh Narandas, supervisor of M/s. Shri Krishna Industries, Vadu. Appeal Nos. E/1603 to 1605/2009 has arisen out of Order -in -Appeal Nos. Commr. (A)/238 to 240/VDR -II/2009, dated September 29, 2009 wherein a demand of Rs. 35,86,397 was confirmed against M/s. Shri Krishna Industries, Jambusar and equivalent amount of penalty was imposed. Further, a penalty of Rs. 50,000 was imposed upon Shri Mukesh Narottambhai Patel, supervisor of Shri Krishna Industries, Jambusar and of Rs. 25,000 upon Shri Hitesh H. Patel, partner of M/s. Giriraj Sales Agency Morbi. Appeal No. E/1602/2009 has arisen out of Order -in -Appeal No. Commr. (A)/241/VDR -II/2009, dated September 29, 2009 wherein a demand of duty of Rs. 16,00,000 was confirmed against M/s. Shri Krishna Industries, Jambusar. Appeal No. E/1163 of 2007 is filed by M/s. Himsun Ceramics.
(2.)THE facts arising for consideration are that M/s. Shri Krishna Industries Ltd. having units at Vadu and Jambusar are engaged in the manufacture of ceramic fritz falling under Chapter 3207 and sodium silicate falling under Chapter 2839 of the Schedule to the Central Excise Tariff Act, 1985. On the basis of investigation conducted by the officers of the DGCEI, zonal unit, Ahmedabad, the Jambusar unit was issued a show -cause notice dated November 17, 2004 and Vadu unit was issued a show -cause notice dated December 16, 2004 alleging that during the periods 2002 -03 and 2003 -04 they were indulged in clandestine removal of ceramic fritz. Further, for the period 2004 -05, the Jambusar unit was issued another show -cause notice dated August 22, 2007 proposing to disallow small -scale industries exemption on the ground that as a result of the investigation of clandestine removal, it was observed that the clearances value in the year 2003 -04 exceeded the small -scale industries exemptions limit and hence the unit is not eligible for small -scale industries exemption during the year 2004 -05.
The show -cause notices dated November 17, 2004 and December 16, 2004 relied upon the certain statements of buyers of ceramic fritz, suppliers of raw material borax acid, two of the transporters, employee of M/s. Shri Krishna and its proprietor Shri Sameer Parekh. The show -cause notices placed reliance upon notebooks/papers seized from the residence of Mukesh Patel, supervisor and accountant of Jambusar unit and also sales invoice, files notebooks of M/s. Shri Krishna Industries, Vadu and Jambusar which were alleged to be containing details of purchase of borax acid one of the raw material and sales details. The show -cause notices alleged that the documents seized from the residence of Shri Mukesh Patel contains the details of purchase of some of the raw material, production and sales details including name of supplier of raw material and buyer of finished goods. The value of goods stated in such seized records were added to the goods cleared on invoices by M/s. Shri Krishna for raising demands. It was also alleged that some of the invoices appearing in one of the bill book has same serial numbers. The show -cause notices also placed reliance upon the statements of Shri Mukesh Patel and other employees and it is alleged that Shri Samir Parekh, the proprietor of M/s. Shri Krishna Industries agreed and accepted the contents of the said statements. The show -cause notices on the basis of statement dated October 16, 2003 of Shri Anilbhai Chimanlal Shah, ex -supervisor of Vadu unit also contended that the fritz manufactured in Vadu plant was sold to different customers under the cover of invoices/delivery challans of M/s. Shri Krishna Industries, M/s. Pioneer Industries and M/s. Associated Industries as per the direction of Shri Sameer Parekh, proprietor of Shri Krishna Industries.

(3.)THE demands and penalties as proposed in all the show -cause notices were confirmed by the adjudicating authority and subsequently upheld by the Commissioner (Appeals). Hence the present appeals.
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