SHRI DEEPAK F. SHAH, CCE., AHMEDABAD I AND M/S. SHREE CHEM INTERMEDIATES Vs. CCE., AHMEDABAD I AND M/S. SHREE CHEM INTERMEDIATES
LAWS(CE)-2014-4-137
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on
April 04,2014
Shri Deepak F. Shah, Cce., Ahmedabad I And M/S. Shree Chem Intermediates
Appellant
VERSUS
Cce., Ahmedabad I And M/S. Shree Chem Intermediates
Respondents
Referred Judgements :-
COMMISSIONER OF CENTRAL EXCISE,MEERUT -I VS. PASWARA PAPERS LTD. [REFERRED TO]COMMISSIONER OF CENTRAL EXCISE,NASIK VS. MODHUKAR SSK LTD. [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE DELHI VS. MARUTI UDHYOG LIMITED [REFERRED TO]
UNION OF INDIA VS. DHARMENDRA TEXTILE PROCESSORS [REFERRED TO]
UNION OF INDIA VS. RAJASTHAN SPINNING AND WEAVING MILLS [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS VS. MOHAMMED FAROOKH MOHAMED GHANI [REFERRED TO]
COMPUSOFT VS. COMMISSIONER OF C EX [REFERRED TO]
RAJAN PRINTS VS. COMMISSIONER OF C. EX. & CUS., SURAT [REFERRED TO]
SOLLY PERUMAL VS. COMMISSIONER OF CUSTOMS, KANDLA [REFERRED TO]
SRICHAKRA TYRES LTD VS. COLLECTOR OF CENTRAL EXCISE [REFERRED TO]
COMMR OF CUSTOMS & CENTRAL EXCISE VS. SILVER STREAK WELDING PRODUCTS INDIA PVT LTD [REFERRED TO]
JUDGEMENT
H.K.THAKUR,J -
(1.)XXXX
(2.)THE following three appeals are directed against common Order -in -Appeal No. 136 -139/2007 (Ahd -I) dated 30.03.2007, passed by the Commissioner (Appeals -I), Central Excise, Ahmedabad -I: -
(i) Appeal No. E/777/2007 has been filed by M/s. Shree Chem Intermediates, Ahmedabad.
(ii) Appeal No. E/778/2007 has been filed by Shri Deepak F. Shah, Partner of M/s. Shree Chem Intermediates.
(iii) Appeal No. E/798/2007 has been filed by the Commissioner, Central Excise, Ahmedabad -I.
As all the above three appeals are based on the same facts, therefore, these are being taken up together for final disposal through this common order.
(3.)THE relevant facts of the after filtering out unnecessary details are that:
(i) On 23.03.2001, Central Excise Officers visited the factory premises of M/s. Shree Chem Intermediates (hereinafter referred to as Shree Chem main appellant), a manufacturer of DASA (4.4 Diamino) and other dyes, and detected shortage of finished goods involving central excise duty of Rs. 6,40,285/ - and shortage of raw materials involving duty of Rs. 2,95,997/ -, and also seized certain records revealing removal of finished goods under parallel invoices without payment of duty amounting to Rs. 2,25,096/ -. Shree Chem admitted that to have duty liability and deposited Rs. 5,00,000/ - during the course of investigation before the issue of show cause notice.
(ii) A Show Cause Notice dated 19.11.2004 was issued by the first adjudicating authority to Shree Chem, Shri Deepak F. Shah and others and the case was adjudicated vide his Order in Original dated 18.11.2005 confirming demand of duty of Rs. 11,61,378/ - along with interest against Shree Chem & imposition of a penalty of Rs. 8,00,000/ - under Section 11AC of the Central Excise Act 1944? A penalty of Rs. 50,000/ - was also imposed upon Shri Deepak F. Shah.
(iii) Being aggrieved with the OIO, dt. 18/11/2005 passed by the Adjudicating Authority both Shree Chem as well as Shri Deepak F. Shah filed appeals with the Commissioner (Appeals), who vide his Order in Appeal No. 70 -73 dated 04.05.2006 remanded the case back to the original adjudication authority for considering the submissions of Shree Chem regarding adjustment of duty paid by three buyers of their clandestinely removed goods against the demand, and for considering the admissibility Credit of Rs. 2,27,220/ - on inputs used in the manufacture of finished goods removed clandestinely.
(iv) In the remand proceeding adjudicating authority passed Order in Original No. 3/JC/07 dated 11.01.2007 again confirming demand of Rs. 11,61,378/ - along with interest, against Shree Chem and imposed a penalty of Rs. 11,61,378/ - on them. A penalty of Rs. 50,000/ - was also again imposed on Shri Deepak F. Shah in remand proceedings.
(v) Being aggrieved with the OIO dated 11.01.2007, both Shree Chem and Shri Deepak F. Shah filed appeals before Commissioner (Appeals), who vide his impugned Order in Appeal dropped demand of Rs. 2,27,220/ - by allowing MODVAT Credit on inputs used in the manufacture of clandestinely removed final products. He further dropped the demand of Rs. 1,25,723/ - (subject to verification on the part of Range Superintendent with the available documentary evidence) by accepting Shree Chem's submission that out of the total shortage of finished goods, involving duty evasion of Rs. 6,40,285/ -, detected on 23.03.2001, shortage to the extent of 5,735.550 Kg of finished goods, involving duty of Rs. 1,25,723/ -, was attributable to 5,735.550 Kg. of finished goods DASA (4:4 Diamino) cleared by them under the cover of parallel invoices, and whether this figure of Rs. 1,25,723/ - also stands included in duty evasion of Rs. 2,25,096/ -. Thus, the Commissioner (Appeal) held that demand of Rs. 8,08,435/ - (out of total demand of Rs. 11,61,378/ -) was sustainable against Shree Chem. The Commissioner (Appeal) reduced the penalty on Shree Chem from Rs. 8 lakh to Rs. 2 lakh under Section 11AC. He also reduced the penalty imposed upon Shri Deepak F. Shah from Rs. 50,000/ - to R. 25,000/ -.
APPEAL No. E/798/2007
CCE Vs. Shree Chem Intermediates
(2.)THE following three appeals are directed against common Order -in -Appeal No. 136 -139/2007 (Ahd -I) dated 30.03.2007, passed by the Commissioner (Appeals -I), Central Excise, Ahmedabad -I: -
(i) Appeal No. E/777/2007 has been filed by M/s. Shree Chem Intermediates, Ahmedabad.
(ii) Appeal No. E/778/2007 has been filed by Shri Deepak F. Shah, Partner of M/s. Shree Chem Intermediates.
(iii) Appeal No. E/798/2007 has been filed by the Commissioner, Central Excise, Ahmedabad -I.
As all the above three appeals are based on the same facts, therefore, these are being taken up together for final disposal through this common order.
(3.)THE relevant facts of the after filtering out unnecessary details are that:
(i) On 23.03.2001, Central Excise Officers visited the factory premises of M/s. Shree Chem Intermediates (hereinafter referred to as Shree Chem main appellant), a manufacturer of DASA (4.4 Diamino) and other dyes, and detected shortage of finished goods involving central excise duty of Rs. 6,40,285/ - and shortage of raw materials involving duty of Rs. 2,95,997/ -, and also seized certain records revealing removal of finished goods under parallel invoices without payment of duty amounting to Rs. 2,25,096/ -. Shree Chem admitted that to have duty liability and deposited Rs. 5,00,000/ - during the course of investigation before the issue of show cause notice.
(ii) A Show Cause Notice dated 19.11.2004 was issued by the first adjudicating authority to Shree Chem, Shri Deepak F. Shah and others and the case was adjudicated vide his Order in Original dated 18.11.2005 confirming demand of duty of Rs. 11,61,378/ - along with interest against Shree Chem & imposition of a penalty of Rs. 8,00,000/ - under Section 11AC of the Central Excise Act 1944? A penalty of Rs. 50,000/ - was also imposed upon Shri Deepak F. Shah.
(iii) Being aggrieved with the OIO, dt. 18/11/2005 passed by the Adjudicating Authority both Shree Chem as well as Shri Deepak F. Shah filed appeals with the Commissioner (Appeals), who vide his Order in Appeal No. 70 -73 dated 04.05.2006 remanded the case back to the original adjudication authority for considering the submissions of Shree Chem regarding adjustment of duty paid by three buyers of their clandestinely removed goods against the demand, and for considering the admissibility Credit of Rs. 2,27,220/ - on inputs used in the manufacture of finished goods removed clandestinely.
(iv) In the remand proceeding adjudicating authority passed Order in Original No. 3/JC/07 dated 11.01.2007 again confirming demand of Rs. 11,61,378/ - along with interest, against Shree Chem and imposed a penalty of Rs. 11,61,378/ - on them. A penalty of Rs. 50,000/ - was also again imposed on Shri Deepak F. Shah in remand proceedings.
(v) Being aggrieved with the OIO dated 11.01.2007, both Shree Chem and Shri Deepak F. Shah filed appeals before Commissioner (Appeals), who vide his impugned Order in Appeal dropped demand of Rs. 2,27,220/ - by allowing MODVAT Credit on inputs used in the manufacture of clandestinely removed final products. He further dropped the demand of Rs. 1,25,723/ - (subject to verification on the part of Range Superintendent with the available documentary evidence) by accepting Shree Chem's submission that out of the total shortage of finished goods, involving duty evasion of Rs. 6,40,285/ -, detected on 23.03.2001, shortage to the extent of 5,735.550 Kg of finished goods, involving duty of Rs. 1,25,723/ -, was attributable to 5,735.550 Kg. of finished goods DASA (4:4 Diamino) cleared by them under the cover of parallel invoices, and whether this figure of Rs. 1,25,723/ - also stands included in duty evasion of Rs. 2,25,096/ -. Thus, the Commissioner (Appeal) held that demand of Rs. 8,08,435/ - (out of total demand of Rs. 11,61,378/ -) was sustainable against Shree Chem. The Commissioner (Appeal) reduced the penalty on Shree Chem from Rs. 8 lakh to Rs. 2 lakh under Section 11AC. He also reduced the penalty imposed upon Shri Deepak F. Shah from Rs. 50,000/ - to R. 25,000/ -.
APPEAL No. E/798/2007
CCE Vs. Shree Chem Intermediates
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