CENTURIAN LABORATORIES Vs. COMMISSIONER OF C. EX., VADODARA

JUDGEMENT

(1.) THESE two appeals are directed against Order -in -Original No. 4/BRC -I/MP/2008, dated 31 -3 -2008.

(2.) THE said Order -in -Original is passed by ld. Commissioner as an adjudicating authority in de novo proceedings, as directed by this Tribunal vide Order dated 5 -1 -2006.

(3.) THE brief facts involved in this case is that M/s. Centurian Laboratories (hereinafter referred to as M/s. C.L.) are having factory at Vadodara and are engaged in manufacture of P&P medicines falling under Central Excise Chapter Heading No. 30 of First Schedule of Central Excise Tariff Act, 1985 and are registered with the authorities. M/s. CL has claimed and availed the SSI benefit in respect of payment of Central Excise duty on the goods cleared by them and were also availing the facility of credit of duty paid on inputs under the provisions of MODVAT/CENVAT rules as applicable during the material period. On an information received from DGCEI Vadodara that M/s. CL were engaged in suppression of production of their final goods in the statutory accounts and subsequent clandestine removal of such un -accounted finished goods in large volume, search operations were conducted on 2nd/3rd July 2003 of the factory premises of M/s. CL at Vadodara. During the search operation, large number of incriminating documents were recovered and placed under seizure. As a follow -up action, search operation was also conducted in the premises of second appellant M/s. AIMCO Pharmaceuticals Mfg. Co. (hereinafter referred to as M/s. AIMCO), and during the course of search operation, no manufacturing activity were found to be carried out in the premises and M/s. AIMCO were conducting the manufacturing activity of finished goods at the premises of M/s. CL. No records were found in the premises of M/s. AIMCO. During the course of investigation, DGCEI officers recorded statements of persons who are concerned with the facts relevant to the goods. After scrutinizing the seized documents and the statements recorded of various persons, show cause notice was issued to M/s. CL, demanding the duty on the goods which were purportedly clandestinely manufactured and cleared from their factory premises, interest thereof and penalties under the provisions of Central Excise law and M/s. AMICO was also issued a show cause notice for imposition of penalty on him. Both the appellants herein contested the issue in de novo proceedings, on merit and on violation of natural justice and on limitation. The adjudicating authority did not agree with the contentions raised by both the appellants and came to conclusion that the demand of duty as raised in the show cause notice needs to be confirmed along with interest and imposed penalties on both the appellants.