VIKASH STEEL TRADERS Vs. C.C.E.

JUDGEMENT

(1.) BY the impugned order, penalty of Rs. 10 lakhs has been imposed on the appellant who is a registered Central Excise dealer for running business as a trader of steel materials. The said penalty has been imposed for the contravention of the provisions of Rule 57GG of the Central Excise Rules, 1944 on the ground that the appellants have neither actually purchased/sold the steel materials nor have there been any loading/unloading of steel materials in their declared godown and have passed on Mod vat Central Excise duty to different manufacturers/traders by raising an invoice without actual supply of the goods under the said invoice. As such the appellants have abetted in the evasion of Central Excise duty by different manufacturers by assisting them to avail unauthorised Modvat credit.

(2.) SHRI B.N. Chattapadhyay, learned Consultant appearing for the appellant(s) submits that the evidences relied upon by the authorities below for coming to the conclusion of contravention of Rule 57 GG are as under:

(3.) AS regards the statement of Shri Ishwar Chand Gupta, he submits that the said statement was retracted by the appellant by way of affidavit before Notary immediately after recording of the statement. However, he fairly agrees that the said affidavit though was sworn after recording of the statement and the same was filed before the Department only at the time of filing reply to the show cause notice.