Case Law Details
Prinik Steels (P) Ltd. Vs Commissioner of Central Excise (CESTAT Kolkata)
Introduction: The case of Prinik Steels (P) Ltd. vs Commissioner of Central Excise (CESTAT Kolkata) revolves around a significant excise duty demand amounting to Rs. 9,27,69,569/- on clandestinely removed M.S. Rods during specific periods. The appeal challenges the Order-in-Original dated 26-02-2010, where the Commissioner not only confirmed the duty but also imposed penalties on the company and key individuals.
Background and Investigation: The case originated from a simultaneous search by DGCEI officers, leading to the discovery of documents indicating unaccounted raw materials, production suppression, and clandestine removal of finished goods. Statements from key individuals further implicated the company.
Clandestine Operations Allegations: The authorities allege clandestine operations based on discrepancies in sales registers, maintaining two sets of accounts, and the use of a fake name ‘Jai Maa Bhawani’ for undisclosed transactions.
Basis of Excise Duty Demand: A show cause notice in 2008 demanded excise duty of Rs. 9,27,69,569/-, including Education Cess, backed by the comparison of sales registers and other recovered documents.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
