TRUWOOD PVT. LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellants in both these appeals filed under Section 35-G of the Central Excise Act, 1944 are assessees engaged in the manufacture of veneers, plywood, decorative plywood and block boards. The appeals are filed against the final order No. 1080-1083/2007 dated 06-09-2007 of the Customs, Excise and Service Tax Appellate Tribunal, Bangalore (for short 'CESTAT').

(2.) The facts leading to the filing of the above appeals are as under: In August, 2002, the Hyderabad Zonal Unit of the Directorate General of Central Excise, Intelligence (for short "DGCEI") started enquiries against the appellants. During the course of conducting the enquiries, the officers of the DGCEI recorded statements from the appellants' employees as well as from a few dealers. They also recovered certain private books and print outs at the premises of some of the dealers which allegedly contained details of actual prices chargeable for the plywood and of cash collected over and above the price indicated in the invoices issued by the appellants towards the sale of veneers/plywood/block boards.

(3.) A show cause notice dated 01-11-2003 was served on them contending (a) that the clearance of all excisable goods i.e. veneer made by the appellants during the financial years 1998-99 to 2002-03 (up to November 2002) were under valued resulting in short payment of duty, (b) that the amounts in excess of the invoice values were realized either through cash or through D.Ds., which was in- turn utilized for unaccounted expenditure and (c) the appellants in order to camouflage the excess amounts received through D.Ds. indulged in the fictitious sale of non-excisable goods like sawn timber door/window frames, trading etc. It proposed to demand from the Truwood Group consisting of the appellants and three other companies, a sum of Rs.21,48,55,018/- besides a penalty under Section 11-AC of the Central Excise Act, 1944 along with interest under Section 11 AB thereof.