Page 102 - ELT_1st June 2020_VOL 372_Part 5th

636 EXCISE LAW TIMES [ Vol. 372

Tally Format by Shri Ramesh M. Shah, Director of M/s. SFL and was being kept
secret in the form of Physical Sheets and also in the form of data stored in Pen
Drives in lockers taken by him fictitious names in “VENILAL SAFETY VAULTS
PVT. LTD.” at Bhuleshwar, Mumbai. The physical records i.e. handwritten Guja-
rati Sheet were maintained by Shri Ramesh Shah in his own handwriting, which
find mention of clandestine removals of excisable goods without cover of Excise
Invoice and without payment of duty of excise, along with removals of goods by
M/s. SFL on payment of duty of excise. Further the records of current clandes-
tine removals were being kept by him at the premises of Lottery/Ice Cream Stall
of Shri Manoj Tanna situated opposite Sunrise Building (Office of M/s. SFL), C.P.
Tank Road, Mumbai 400004. The keys of the lockers were kept with Manoj Tanna
only to avoid detection. Moreover, the handwritten Gujarati Sheets were main-
tained by him by placing decimal after one digit from right of an amount of arti-
ficially reduce the data by 1/10th, adopting illicit tactics to deceive the Govern-
ment exchequer. Thus, his intention was quite obviously, not to pay legitimate of
excise, by manipulating the business of statutory records/returns, and thus they
had acted to defraud the Government exchequer. Shri Kartik R. Shah, Director of
M/s. SFL admitted part of clandestine transactions and also paid an amount of
Rs. 80,00,000/- towards their Central Excise duty liability arising out of the above
discussed clandestine transactions effected by M/s. SFL.
6.6 Accordingly, Show Cause Notice No. DGCEI/MZU/I&OS’C’/
12(4)104/12, dated 6-5-2014 was issued to them proposing recovery of central
excise duty and inadmissible Cenvat credit totally amounting to Rs.
21,83,98,186/- (Ruppees Twenty One Crore Eighty Three Lakh Ninety Eight
Thousand One Hundred & Eighty Six Only) along with interest and penalty. Per-
sonal penalties upon Directors of M/s. SFL were also proposed.
6.7 To above said SCN was adjudicated vide O-I-O No. AHM-EXCUS-0
03-COM-12-17-18, dated 27-2-2018, wherein the adjudicating authority confirmed
the demand of Rs. 21,83,98,186/- along with interest and also imposed of equal
amount of duty upon the assessee; personal penalty of Rs. 2.00 Crore each on
two Directors-Shri Ramesh M. Shah and Shri Kartik R. Shah, and penalty of Rs.
1.00 Crore upon M/s. Sanklap Foils Pvt. Ltd.
6.8 Being aggrieved with the above O-I-O, the assessee and it’s Direc-
tors, Shri Ramesh M. Shah and Shri Kartik R. Shah filed an appeal before the
CESTAT, West Zone, Ahmedabad vide Appeals No. E/12274/2018;
E/11436/2018 and E/11433/2018 respectively. The Hon’ble CESTAT vide Final
Order No. A/10120-10125/2019, dated 18-1-2019 allowed all the appeals and set
aside the impugned order dated 27-2-2018 mainly observing that :
(i) the charges of clandestine removal on the basis of pen drive data are
not sustainable;
(ii) since already held that the pen drive data is not substantial evi-
dence and no evidence of extra receipt has been produced in the
form of person from whom such extra consideration was given,
how it was given and how it was received by assessee, therefore, the
demand on account of undervaluation is not sustainable.
(iii) revenue has not proved the allegation with any evidence as it has to
be shown by making investigation at the supplier’s end, statements
of suppliers and other corroborative evidences including receipt
from suppliers, thus, the allegation on the ground of availment of
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