COMMISSIONER OF CENTRAL EXCISE LUDHIANA Vs. DEEPAK ROADWAYS

JUDGEMENT

(1.) This judgment shall dispose of CEA No. 50 of 2006 and CEA No. 77 of 2006, as common questions of law and facts arise in both these appeals.

(2.) The Revenue has impugned the order dated 16.7.2004, passed by the Customs, Excise & Service Tax Tribunal (New Delhi) (for short 'the Tribunal'), vide which a penalty of Rs. 50,000/- imposed upon each of the respondent was ordered to be set aside.

(3.) Briefly, the facts of the case are that the premises of M/s Shobit Impex situated at Abohar as well as their godown and factory premises of M/s Gandhi Chem-Fert Industries, Abohar were checked on 22.7.1998. During the search, the factory premises of Gandhi Chem-Fert Industries at Abohar, sale invoices, copies of bills of entry and copies of Good Receipts (for short 'G.R.s') and other miscellaneous correspondence files pertaining to M/s Shobit Impex were recovered and resumed under proper Panchnama dated 23.7.1998. During further search, it was found that dimensions of the godown premises of M/s Shobit Impex were only 12 x 18 feet. Hence, the godown was incapable to store huge consignments of copper rod and scrap. On further enquiry, it transpired that the room was never used for storage of goods and no one had seen any kind of activity regarding transportation of the imported goods. Finding the aforementioned irregularities, the adjudicating authority issued notices not only to M/s Shobhit Impex, but to various other buyers to whom the fake modvat invoices had been sent. Notices were also issued to the respondent-transporters, who are alleged to be transporters of the imported consignments, as it was prima facie found that the respondent-transporter had facilitated the issuance of blank G.R.s in favour of various buyers, to whom the show cause notice had also been given.