COMMISSIONER OF CENTRAL EXCISE Vs. AZAD ENGG WORKS

JUDGEMENT

(1.) This appeal has been preferred by the revenue against the order of Customs, Excise and Service Tax Appellate Tribunal, New Delhi, quashing the order of levy of duty and imposition of penalty. Though, several questions of law have been posed in the memo of appeal, learned counsel for the appellant mainly pressed the question of perversity in the findings of the Tribunal.

(2.) Case of the appellant is that on 6-3-1998, the Central Excise Officers visited the factory premises of respondent M/s. Azad Engineering Works, Bathinda and recovered incriminating documents i.e. private note books, duplicate set of invoices, unaccounted purchase bills/sale bills private ledgers etc. In the course of verification, the respondent organised a mob which obstructed the functioning of the department and which led to lodging of FIR No. 60 dated 6-3-1998 in Civil Lines, Police Station, Bathinda against S/Shri Sewak Ram Bhola, Sarup Chand, partner of respondent-assessee and Madan Lal Kapoor, President Punjab Pradesh Beopar Mandal, Bathinda. On scrutiny of record, it was revealed that the assessee was engaged in manufacture of ISI/non-ISI marked diesel engines and was registered with the Bureau of Indian Standards, having brand names Power Master, Power Man and Super Shakti. The assessee was also selling ready-made diesel engines, generating sets and alternators purchased from other manufacturers. The diesel engines were mostly sold by the assessee through dealers to farmers which were financed by Primary Agricultural Development Banks. Diesel Generating sets and alternators were mostly sold to individual customers directly. From the data collected from the banks, it was found that the figures of sale in the books of account of the assessee were inaccurate and far below the actual sales. Year-wise break up of sale of diesel engines financed through various PAD Banks as against the sale of diesel engines as per the invoices issued by the noticee, was found to be as under: _________________________________________________________ Year Sale of Diesel Engines Sale of Die as per invoices issued sel engines by the part No. 1 _________________________ Sale as Per list _________________________ Dealers Others Total Provided by PAD Banks ____________________________________________________ 1994-95 170 72 242 339 1995-96 281 78 359 490 1996-97 107 89 194 289 1997-98 107 88 195 428 ____________________________________________________

(3.) The respondent was summoned under Section 14 of the Act on 23-3-1998, 1-4-1998, 24-4-1998, 20-5-1998, 5-6-1998, 29-10-1998, 16-12-1998, 29-12-1998, 17-2-1999 and 10-6-1999, inter alia, to explain the facts and figures of his unaccounted purchase of inputs, clandestine manufacture of excisable products and sale thereof but he did not comply with the summons.