Case Law Details
Shyam Ingot & Castings Pvt. Ltd Vs Commissioner of Customs (CESTAT Delhi)
The CESTAT, New Delhi in the matter of M/s Shri Shyam Ingot & Castings Pvt. Ltd. v. Commissioner of Customs & Central Excise [Excise Appeal No. 52550 of 2019-SM dated August 08, 2022] held that there shall be consonance between the allegation levelled by the Revenue and the records presented against the taxpayer. Further held that the allegation cannot be justified in absence of any admission from the assessee against the alleged clandestine transaction. Moreover, third party records and statement by Director of the Company cannot be used against the assessee for non-joinder of the parties.
Facts:
On the basis of intelligence, preventive officers of the Headquarter, Central Excise, Raipur (“the Respondent”) conducted searches at the factories and office premises of one M/s Pankaj Ispat Limited, Raipur (“M/s PIL”) and seized several records/ documents. On scrutinising the records/documents, discrepancies were revealed besides other by M/s PIL on against purchase of 245.960 MT of MS ingot from M/s Shri Shyam Ingot & Castings Pvt. Ltd. (“the Appellant”) without payment of excise duty. Accordingly, a follow up enquiry was conducted against the Appellant under summons mode. On comparison of information contained in the seized records of M/s PIL with the information contained in the records produced by the Appellant revealed that, the aforesaid quantities of M.S. ingots had not been accounted for in the records of the appellant’s factory. The Appellant, denied to the allegation of clandestinely removing 245.960 MT of M.S. Ingots during the relevant period to M/s PIL without payment of duty of Rs. 9,95,239/- in contravention of the various provisions of the Central Excise Act, 1944.
Show cause notice (“SCN”) was issued to the appellant for the demand of central excise duty amounting to Rs.7,95,239/- along with interest and penalty under Section 11AC(1)(c) of the Central Excise Act. The demand proposed in the SCN was affirmed along with 100% penalty upon the Director of the Appellant vide Order-In-Original (“OIO”), under Rule 26 of the Central Excise Rules, 2002 (“the Central Excise Rules”)
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