SIV INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) By this appeal, M/s SIV Industries, the appellants herein challenge the Order -in -Original No. 5/99 (C) dated 31.5.1999 passed by the Commissioner of Central Excise, Coimbatore, by which the Commissioner has confirmed a duty demand of Rs. 36,12,733 on the appellants under Rule 9(2) read with proviso to Section 11A of the CE Act 1944. He has also imposed a combined penalty of Rs. 37,00,000 under Rules 9(2), 52A, 173Q, 226 of the CE Rules, 1944 and Section 11 AC of the CE Act, 1944.

(2.) The brief facts of the case are that, based on intelligence gathered by the officers working in Mettupalayam Range, that scraps of various metals were cleared without payment of duty, enquiries were made from various functionaries of the appellants, and on investigation, unearthed invoices which were used for clearing metal scraps. It was noticed by them that removal of scraps had been carried out under separate set of invoices. It was also found on investigation that the appellants have purchased various grades of virgin metals like steel, stainless steel, aluminium etc. to the tune of Rs. 3.34 crores from M/s. Hindustan Corporation and M/s. Hindustan Hard Wares alone, who are two of their suppliers. The officers also noticed that there were two maintenance workshops and one Electrical workshop within the factory premises of the appellants and they further noticed that machines were used for mechanical working such as lathes, drilling machines, boring machines, scaring machine, welding machine, shaping machine and hacksaw cutting machine.

(3.) Shri J. Sankararaman, learned Counsel appeared for the appellants and referred to the grounds of appeal wherein it is inter alia stated as under: