POOJA ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE present appeals are filed aggrieved by the impugned order passed by the Commissioner, Central Excise and Customs, Vapi. The impugned order confirms the demand of an amount of Modvat credit of Rs. 7,82,912/ - under Rule 57 I of erstwhile Central Excise Rules, 1944 read with Section 11A(2) of the Central Excise Act, 1944 on M/s. Pooja Enterprises which is a main appellant and also ordered for recovery of the amount of Modvat credit in balance of Rs. 7,005/ -while imposing penalty of Rs. 5.00 Lakhs. Further, the impugned order also imposes personal penalties on other appellants. Hence this appeal.

(2.) THE main appellants i.e. M/s. Pooja Enterprises at the relevant time was, inter -alia, engaged in the business of manufacturing Aluminium Wires and Zinc Wires. It was a Small Scale Unit, as such availing the benefit of Notification No. 175/86 -CE dated 01.03.1986. After post July 1998, the appellants became a proprietory concern of M/s. Shree Stalco Engineering Pvt. Ltd. On 20.07.1988, the appellants premises were searched by the officers of the Central Excise in connection with alleged contraventions of the provisions of Rule 173B, Rule 173C, Rule 173F, Rule 173G(1) read with Rule 9(1), Rule 173G(2) read with Rule 52A, Rule 173G(4) read with Rules 53 and 226, Rule 57A, Rule 57B, Rule 57F(3) and Rule 57G (2) of the erstwhile Central Excise Rules, 1944. In this connection various records such as personal ledger Account (PLA), RG 23 Part I and II Central Excise Challans, Central Excise GPI, files containing records of purchase made by the appellants, all records and documents pertaining to the bank transactions with various banks, records and documents in relation to the transport of goods to and from the appellants premises, all records pertaining to the receipt, issue and consumption of various consumables required to run the machineries installed at the appellants premises, files containing electricity consumption records etc. were taken over by conducting various panchanamas.

(3.) DURING the course of investigation statements of various persons were recorded under force and duress. The initial statement of Shri Hariprasad Taparia, Proprietor of M/s. Shri Venkatesh Metal Corporation dated 20.07.1998 was retracted very next day. In so far as the statement of Shri. Hariprasad Taparia, Proprietor of Shri Venkatesh Metal Corporation is totally exculpatory and support the appellants case.