GOVIND PRINTING WORKS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE above captioned three appeals have been filed against a common Order -in -Original dated 31 -8 -2001. The two Appeals Nos. 2351 -2352/2001 had been filed by the assessee firm M/s. Govind Printing Works and its proprietor, Shri Shiv Ratan Das Kanodia, while the third Appeal No. E/2995/2002 had been filed by the Revenue.

(2.) SHRI Shiv Ratan Das Kanodia is the sole proprietor of firm of M/s. Govind Printing Works. He is engaged in the processing of grey fabric falling under Heading 5207 of the CETA. He also carries out drawing, scouring, padding, bleaching and dyeing of cotton fabrics on job work basis. He had been availing the benefit of Notification No. 5/99 -C.E., dated 28 -2 -99, by making declaration under Rule 174 of the Rules that the work of dyeing and bleaching was not being carried out by him with the aid of power and steam. However, on surprise checking by the Central Excise Officers, of his factory on 21 -5 -1999, it was revealed that, he was carrying out these processes with the power aided jiggers. However, no finished processed fabric was found lying in his factory. But he in his own statement recorded at the spot on 21 -5 -99 and thereafter on 14 -9 -99 admitted that the processes of dyeing, scouring, bleaching and calendering, etc., of cotton fabrics, were being carried out by him with the power aided machines, since 1988. He also got enhanced/increased his earlier electricity load of 90 H.P. to 101 KVA. The declaration made by him on 12 -4 -99 under Rule 174 of the Rules, was found to be incorrect. The list of the machines and electric motors installed in the factory premises, by him, was also prepared by the Officers on 21 -5 -99. The electricity bills for the period October, 1995 to March, 1999 were also procured from KESA, Kanpur which were in his name. On completion of investigation, a show cause notice was served on the firm and its proprietor, Shri Shiv Ratan Das Kanodia, vide which the duty demand for the period 1 -4 -94 to 31 -5 -99 on the fabrics processed by them, was raised and imposition of penalty was also proposed therein. The correctness of the show cause notice was, however, contested by Shri Shiv Ratan Das Kanodia as proprietor of the firm, by alleging that prior to 26 -4 -99 he was carrying the process of bleaching and dyeing without the aid of power and that he purchased four power operated jiggers from M/s. Roshan Trading Co. vide bill No. 025 dated 26 -4 -99 against payment which was duly reflected in his books of account. He also averred that those jiggers were second hand and after getting the same repaired, were installed by him actually on 15 -5 -99. He also pleaded that the alleged confessional statement was procured from him by the Officers of Central Excise by coercion and torture and that he lodged police report in that regard also. He, further, averred that in his statement recorded firstly on 21 -5 -99 and secondly on 14 -9 -99, wherein he allegedly disclosed the details regarding the use of power operated jiggers since 1988, and procurement of purchase bill in respect of four second hand power operated jiggers after the visit of the Central Excise Officers, were taken under duress, and that he retracted those statements. He denied of having made false declaration regarding the non -use of power in carrying the processes of dyeing and bleaching of grey fabric, during the period in dispute for which the duty demand was raised from him in the show cause notice. He also denied that the benefit of exemption Notification No. 5/99 -C.E., had been availed wrongly by suppressing and concealing the true facts from the Department.

(3.) THE adjudicating authority, however, did not accept the version of Shri Shiv Ratan Das Kanodia, proprietor of the firm and confirmed the duty demand for the period April, 1995 to May, 1999 with penalty under Section 11AC against the firm and also imposed separate penalty on the proprietor, Shri Shiv Ratan Das Kanodia, through impugned Order.