Custom, Excise & Service Tax Tribunal Rajputana Stainless Ltd vs VadodaraIi on 5 October, 2023 Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench at Ahmedabad REGIONAL BENCH COURT NO. 3 Excise Appeal No. 10077 of 2023 DB (Arising out of OIOVADEXCUS002COM0152122 dated 14/03/2022 passed by Commissioner of Central Excise, Customs and Service TaxVADODARAII) RAJPUTANA STAINLESS LTD ........Appellant 213 Madhwas Halol Kalol Road Taluka Kalol Panchmahal Panchmahal, Gujarat VERSUS C.C.E. & S.T.VADODARAII .......Respondent 1st Floor... Room No.101, New Central Excise Building, Vadodara, Gujarat 390023 WITH Excise Appeal No. 10949 of 2022 Shankar D Mehta Excise Appeal No. 10434 of 2022 Jayantibhai M Sanghavi Excise Appeal No. 10435 of 2023 Mohd. Rafiq Aziz Shaikh Excise Appeal No. 10436 of 2023 Sachin G Shah APPEARANCE: Shri H.G Dharmadhikari & Shri D.A Bhalerao, Advocates for the Appellant Shri Prabhat K Rameshwaram, Commissioner (AR) for the Respondent HON'BLE MEMBER (TECHNICAL), MR. C.L MAHAR Final Order No. A/ 12211 12215/2023 DATE OF HEARING: 10.08.2023 DATE OF DECISION: 05.10.2023 RAMESH NAIR The Appellants, namely, M/s Rajputana Stainless Ltd. and Shri Shri Shankar Lal Deep Chand Mehta, Director, Shri Sachin G Shah, Dispatch Clerk, Shri Jayantibhai M Sanghvi, Marketing Executive and Shri Mohammad Rafiq Abdul aziz Shaikh are in appeals against the impugned Order InOriginal No. VADEXCUS002COM0152122 dated 14.03.2022 wherein demand of central excise duty has been confirmed against M/s. Rajputana Stainless Ltd 2|Page E/10077/2023, E/10949, 1043410436/2022 along with interest and penalties on the charge of clandestine removal of manufactured goods and penalty was also imposed on all the appellants. 1.2 The brief facts of the case are that M/s Rajputana Stainless Ltd. are engaged in the manufacture of Stainless Steel Billets, Bright Bars, Rounds, Flats etc. and registered with the central excise department. A search was conducted on 02.12.2015 by the Directorate of Income Tax (Investigation) at the office, factory premises and residence of Director and various key persons of the Appellant and certain incriminating documents/ records were withdrawn for further investigation by the Income Tax Department. Evidences of unaccounted sales were found in data files of 'Tally Software and Visual Udyog Software. Further, certain loose papers and diaries were found and seized which contained the quantitative details of all materials entering and leaving the factory premises. The Income Tax Authorities shared the information and unaccounted sales, purchase and production in the form of soft copies of data of Tally & Visual Software, the scanned copies of the loose papers and diaries seized by the Income Tax Department at various premises and photocopies of the Panchnama and statements recorded by the Income Tax Authorities. The Central Excise Department followed up with further enquiry, by recording the statements of key person of Appellant and examined the documents and data files etc. shared by the Income Tax Department. On conclusion a detail show cause notice was issued to the appellant proposing demand of central excise duty on account of alleged clandestine clearances of the goods along with interest and penalty. The case was adjudicated by the Ld. Commissioner vide impugned order, who confirmed the demand towards Central Excise duty as proposed in the show cause notice on M/s. Rajputana. He imposed equal amount of penalty on the company and penalties of on Shri Shankar Deepchand Mehta Director of the company, Shri Sachin G Shah, Dispatch Clerk, Shri Jayantibhai M Sanghvi, Marketing Executive and Shri Mohammad Rafiq Abdul Aziz Shaikh, Authorized person of M/s. KGN Transport. Aggrieved with the said impugned order, the Appellants are before us. 3|Page E/10077/2023, E/10949, 1043410436/2022 2. Shri H.G. Dharmadhikari, Learned Counsel with Shri D.A. Bhalerao, Learned Advocate appearing on behalf of the Appellants submits that the central excise department has not carried out any detailed investigation; rather they have utilized the material forwarded by the income tax authorities vide their letter dated 30.11.2016. The department has only recorded the statements of some persons and thereafter, impugned show case notice was issued. Thus, the investigation carried out by the Central Excise Department is limited to the afores