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Frontier Alloy Steels Ltd. and Others V/S Commissioner of Central Excise, Lucknow


Company & Directors' Information:- V S L STEELS LIMITED [Active] CIN = U27109KA2003PLC058185

Company & Directors' Information:- H M STEELS LIMITED [Active] CIN = U27106PB1999PLC022707

Company & Directors' Information:- D S R M STEELS PRIVATE LIMITED [Active] CIN = U27310TZ2005PTC012353

Company & Directors' Information:- P D P STEELS LTD [Active] CIN = U65921WB1996PLC077555

Company & Directors' Information:- FRONTIER ALLOY STEELS LIMITED [Active] CIN = U27105UP1986PLC007967

Company & Directors' Information:- R V M STEELS INDIA PRIVATE LIMITED [Active] CIN = U51420HR2004PTC035426

Company & Directors' Information:- S D S STEELS PRIVATE LIMITED [Active] CIN = U51420TN2006PTC060563

Company & Directors' Information:- R K K R STEELS PRIVATE LIMITED [Active] CIN = U27101TN1965PTC006069

Company & Directors' Information:- O P STEELS PRIVATE LIMITED [Active] CIN = U27109DL1987PTC027085

Company & Directors' Information:- M P S STEELS PRIVATE LIMITED [Active] CIN = U27100KL2012PTC038919

Company & Directors' Information:- H R STEELS PRIVATE LIMITED [Active] CIN = U74899DL1995PTC070914

Company & Directors' Information:- B G STEELS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC042560

Company & Directors' Information:- N G A STEELS PRIVATE LIMITED [Active] CIN = U27109TZ1995PTC005908

Company & Directors' Information:- C V S STEELS PRIVATE LIMITED [Active] CIN = U29253DL2009PTC189824

Company & Directors' Information:- P P S. STEELS INDIA PRIVATE LIMITED [Active] CIN = U27106TZ2002PTC010188

Company & Directors' Information:- J P STEELS LTD [Active] CIN = U27107AS1992PLC003736

Company & Directors' Information:- FRONTIER INDIA PVT LTD [Active] CIN = U35921PB1981PTC004545

Company & Directors' Information:- K P STEELS LIMITED [Liquidated] CIN = U27109TG1986PLC006878

Company & Directors' Information:- P L STEELS PRIVATE LIMITED [Active] CIN = U27109UR2004PTC000445

Company & Directors' Information:- Z V STEELS PRIVATE LIMITED [Active] CIN = U51909MH1997PTC109791

Company & Directors' Information:- M Q STEELS PRIVATE LIMITED [Active] CIN = U74899DL1997PTC089231

Company & Directors' Information:- N. STEELS PRIVATE LIMITED [Active] CIN = U27106GJ2009PTC056732

Company & Directors' Information:- C I C STEELS PVT LTD [Active] CIN = U27109WB1988PTC045251

Company & Directors' Information:- M J R STEELS PVT LTD [Active] CIN = U74999WB1996PTC076803

Company & Directors' Information:- H S M STEELS PRIVATE LIMITED [Active] CIN = U27100TG2010PTC067913

Company & Directors' Information:- D C STEELS LIMITED [Active] CIN = U27106PB1990PLC010517

Company & Directors' Information:- G M K STEELS PRIVATE LIMITED [Active] CIN = U74899DL2000PTC108623

Company & Directors' Information:- S I F STEELS LIMITED [Active] CIN = U27310GJ1972PLC002137

Company & Directors' Information:- S S R K STEELS PRIVATE LIMITED [Strike Off] CIN = U27109TG2007PTC055783

Company & Directors' Information:- M U STEELS PRIVATE LIMITED [Active] CIN = U27100DL2011PTC228818

Company & Directors' Information:- M P K STEELS I PRIVATE LIMITED [Active] CIN = U27109AS2005PTC007674

Company & Directors' Information:- L M STEELS PRIVATE LIMITED [Active] CIN = U13209UP1980PTC005064

Company & Directors' Information:- S I STEELS INDIA PRIVATE LIMITED [Strike Off] CIN = U52390PY2009PTC002285

Company & Directors' Information:- P M P STEELS LIMITED [Strike Off] CIN = U93090TN1994PLC026915

Company & Directors' Information:- V A R ALLOY & STEELS PRIVATE LIMITED [Active] CIN = U27100WB2001PTC093894

Company & Directors' Information:- M A STEELS PRIVATE LIMITED [Active] CIN = U27109KL2002PTC015691

Company & Directors' Information:- M D STEELS PRIVATE LTD. [Active] CIN = U74899DL1987PTC029358

Company & Directors' Information:- D. I. STEELS PRIVATE LIMITED [Active] CIN = U27100MH2005PTC153442

Company & Directors' Information:- A B M STEELS PRIVATE LIMITED [Active] CIN = U27101GJ1986PTC008391

Company & Directors' Information:- T & S STEELS INDIA PRIVATE LIMITED [Strike Off] CIN = U27109KA2007PTC043617

Company & Directors' Information:- T G V STEELS LIMITED [Strike Off] CIN = U27100TG1996PLC023224

Company & Directors' Information:- A TO Z STEELS PRIVATE LIMITED [Active] CIN = U74899DL1988PTC030735

Company & Directors' Information:- S K STEELS PVT LTD [Active] CIN = U27109WB1971PTC027999

Company & Directors' Information:- B. K. STEELS PVT. LTD. [Active] CIN = U27109WB1995PTC068343

Company & Directors' Information:- S M STEELS INDIA PRIVATE LIMITED [Active] CIN = U74899DL1974PTC007190

Company & Directors' Information:- I R C STEELS LTD [Active] CIN = U45208WB1966PLC024114

Company & Directors' Information:- G K M STEELS PRIVATE LIMITED [Active] CIN = U27105DL2012PTC246243

Company & Directors' Information:- R B STEELS PRIVATE LIMITED [Active] CIN = U27106AS1994PTC004200

Company & Directors' Information:- S. A. STEELS PVT LTD [Strike Off] CIN = U27106PB1985PTC006227

Company & Directors' Information:- A H STEELS PRIVATE LIMITED [Active] CIN = U74899DL1995PTC073017

Company & Directors' Information:- J K L STEELS PVT LTD [Active] CIN = U27104DL1997PTC088424

Company & Directors' Information:- E D STEELS PVT LTD [Active] CIN = U27310MH1975PTC018180

Company & Directors' Information:- P AND B STEELS INDIA LIMITED [Active] CIN = U27106KL1995PLC008742

Company & Directors' Information:- V K STEELS PVT LTD [Strike Off] CIN = U27310HP1987PTC007712

Company & Directors' Information:- N E STEELS PRIVATE LIMITED [Strike Off] CIN = U27104WB2002PTC116973

Company & Directors' Information:- U R STEELS PRIVATE LIMITED [Strike Off] CIN = U27100TG2008PTC060899

Company & Directors' Information:- H S STEELS PRIVATE LIMITED [Active] CIN = U27109PB1995PTC016111

Company & Directors' Information:- G S STEELS PRIVATE LIMITED [Active] CIN = U74899DL1988PTC030339

Company & Directors' Information:- P M P STEELS PRIVATE LIMITED [Strike Off] CIN = U27109TZ1990PTC002882

Company & Directors' Information:- G K ALLOY STEELS PRIVATE LIMITED [Active] CIN = U27109TZ1980PTC000978

Company & Directors' Information:- CENTRAL INDIA STEELS PVT LTD [Strike Off] CIN = U27101MP1985PTC002916

Company & Directors' Information:- W S STEELS PRIVATE LIMITED [Strike Off] CIN = U27106PB1982PTC005084

Company & Directors' Information:- K G K STEELS PRIVATE LIMITED [Strike Off] CIN = U27310TZ1997PTC008228

Company & Directors' Information:- K M S STEELS PRIVATE LIMITED [Strike Off] CIN = U27310TZ1997PTC008161

Company & Directors' Information:- S T STEELS PVT LTD [Active] CIN = U27106PB1990PTC010915

Company & Directors' Information:- K L STEELS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC038783

Company & Directors' Information:- S S A P STEELS PRIVATE LIMITED [Active] CIN = U27106DL1999PTC101645

Company & Directors' Information:- M F STEELS PVT. LTD [Active] CIN = U74899DL1971PTC005517

Company & Directors' Information:- R G STEELS PVT LTD [Active] CIN = U27109WB1987PTC042824

Company & Directors' Information:- C N STEELS PVT LTD [Strike Off] CIN = U27100GJ1994PTC022570

Company & Directors' Information:- K L STEELS P LTD [Strike Off] CIN = U27109PB1984PTC005895

Company & Directors' Information:- J G STEELS PRIVATE LIMITED [Active] CIN = U74899DL1997PTC086865

Company & Directors' Information:- S B STEELS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC017414

Company & Directors' Information:- V I A STEELS PRIVATE LIMITED [Strike Off] CIN = U27109UP1993PTC015933

Company & Directors' Information:- K K STEELS INDIA PVT LTD [Active] CIN = U27109PB1990PTC010714

Company & Directors' Information:- D R J STEELS PRIVATE LIMITED [Active] CIN = U27310PB2007PTC031003

Company & Directors' Information:- S R R STEELS PRIVATE LIMITED [Strike Off] CIN = U27105KL1998PTC012156

Company & Directors' Information:- M. G. STEELS LIMITED [Active] CIN = U74999DL1986PLC025140

Company & Directors' Information:- A B N STEELS PRIVATE LIMITED [Strike Off] CIN = U27106OR1996PTC004473

Company & Directors' Information:- M. P. ALLOY PRIVATE LIMITED [Strike Off] CIN = U28111UP1995PTC018405

Company & Directors' Information:- F C ALLOY STEELS PRIVATE LIMITED [Liquidated] CIN = U22121TN1981PTC008744

Company & Directors' Information:- A Y STEELS PRIVATE LIMITED [Active] CIN = U74120UP2014PTC066079

Company & Directors' Information:- I D STEELS PRIVATE LIMITED [Active] CIN = U74899DL2000PTC109048

Company & Directors' Information:- V R STEELS PRIVATE LIMITED [Strike Off] CIN = U74899DL1981PTC011447

Company & Directors' Information:- R D STEELS LIMITED [Active] CIN = U27106PB1999PLC022934

Company & Directors' Information:- P S G STEELS PRIVATE LIMITED [Active] CIN = U27109HR1984PTC018249

Company & Directors' Information:- N D STEELS LTD [Strike Off] CIN = U28111WB1989PLC047025

Company & Directors' Information:- K J STEELS PVT LTD [Strike Off] CIN = U27310GJ1981PTC004392

Company & Directors' Information:- V L STEELS PRIVATE LIMITED [Strike Off] CIN = U27107WB2004PTC100815

Company & Directors' Information:- R K STEELS PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC020523

Company & Directors' Information:- S F STEELS PVT LTD [Active] CIN = U51900WB2006PTC107234

Company & Directors' Information:- E R S STEELS PVT LTD [Strike Off] CIN = U27104KL1994PTC008341

Company & Directors' Information:- K K K STEELS PRIVATE LIMITED [Strike Off] CIN = U27106PB1998PTC020961

Company & Directors' Information:- K. N. STEELS PRIVATE LIMITED [Strike Off] CIN = U27107WB2007PTC117868

Company & Directors' Information:- A AND A STEELS PVT LIMITED [Strike Off] CIN = U27104CH1993PTC012992

Company & Directors' Information:- M G INDIA STEELS PRIVATE LIMITED [Strike Off] CIN = U27104TN2005PTC056331

Company & Directors' Information:- N. J. STEELS PRIVATE LIMITED [Amalgamated] CIN = U27108DL1996PTC077190

Company & Directors' Information:- B M STEELS PRIVATE LIMITED [Active] CIN = U51102TN1976PTC007165

Company & Directors' Information:- R T STEELS PVT LTD [Active] CIN = U27109TG1982PTC003556

Company & Directors' Information:- L. R. STEELS PRIVATE LIMITED [Strike Off] CIN = U27106UP2002PTC026946

Company & Directors' Information:- R. S. A. STEELS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U51392DL2011PTC213878

Company & Directors' Information:- K S R STEELS PRIVATE LIMITED [Strike Off] CIN = U99999DL1992PTC049052

Company & Directors' Information:- S R STEELS PVT LTD [Strike Off] CIN = U27104PB1983PTC005586

Company & Directors' Information:- M B STEELS PRIVATE LIMITED [Strike Off] CIN = U99999MH1975PTC018595

Company & Directors' Information:- M R STEELS PVT LTD [Active] CIN = U27108MH1980PTC022743

Company & Directors' Information:- N I STEELS PRIVATE LIMITED [Strike Off] CIN = U27209UP1978PTC004654

Company & Directors' Information:- B D K ALLOY PRIVATE LIMITED [Amalgamated] CIN = U27106KA1973PTC002355

Company & Directors' Information:- J M M D STEELS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC035398

Company & Directors' Information:- B C S STEELS PRIVATE LIMITED [Strike Off] CIN = U27100PB2005PTC027831

Company & Directors' Information:- K. A. STEELS PRIVATE LIMITED [Active] CIN = U27100PB2011PTC034822

Company & Directors' Information:- B K STEELS PRIVATE LIMITED [Strike Off] CIN = U27109PB1985PTC006128

Company & Directors' Information:- J M D STEELS PRIVATE LIMITED [Active] CIN = U27300PB2012PTC036293

Company & Directors' Information:- A P R STEELS PRIVATE LIMITED [Strike Off] CIN = U27109DL2000PTC104579

Company & Directors' Information:- H A S STEELS PRIVATE LIMITED [Active] CIN = U27109DL2004PTC125908

Company & Directors' Information:- D N S STEELS PRIVATE LIMITED [Active] CIN = U28991DL2013PTC259964

Company & Directors' Information:- L & T STEELS PRIVATE LIMITED [Active] CIN = U27320PB2021PTC052861

Company & Directors' Information:- K. M. ALLOY AND STEELS PRIVATE LIMITED [Strike Off] CIN = U27310KA1982PTC005028

Company & Directors' Information:- A Z STEELS PVT LTD [Strike Off] CIN = U72100NL1993PTC003884

Company & Directors' Information:- A N STEELS PVT LTD [Strike Off] CIN = U72100AS1993PTC003848

Company & Directors' Information:- P S G STEELS PVT LTD [Active] CIN = U99999DL1984PTC018249

    Appeal Nos. E/256-260/2010-EX[DB] (Arising out of Order-in-Original No. 61/Commissioner/Lko/CX/2009 dated 30/09/2009 passed by Commissioner of Central Excise & Service Tax, Lucknow) and Final Order Nos. 71582-71586/2018

    Decided On, 18 July 2018

    At, Customs Excise Service Tax Appellate Tribunal Regional Bench Allahabad

    By, THE HONORABLE JUSTICE: ARCHANA WADHWA
    By, MEMBER AND THE HONORABLE JUSTICE: ANIL G. SHAKKARWAR
    By, MEMBER

    For Petitioner: Amit Mahajan and Abhinav Prasad, Advocates And For Respondents: Mohammad Altaf, Assistant Commissioner (AR)



Judgment Text


1. All the appeals are being disposed of by a single order, as they arises out of the same impugned order dated 30/09/2009 passed by Commissioner of Central Excise, Lucknow, vide which the demand of duty to the extent of Rs. 50,86,570.00/- stands confirmed against M/s. Frontier Alloy Steels Ltd. (M/s. FASL) along with confirmation of interest and imposition of penalty of identical amount in terms of Section 11AC of the Central Excise Act. In addition penalty of same amount stands imposed upon Shri K.L. Bhatia and Shri Chetan Bhatia, Directors of the appellant Company. Further, penalty of Rs. 5 lakhs stands imposed on each Shri C.D. Bhatia and Shri S.C. Bhatia, the other Directors of the appellant Company.

2. After hearing both the sides duly represented by Shri Amit Mahajan & Shri Abhinav Prasad, Advocates for appellants and Shri Mohammad Altaf, Assistant Commissioner (AR) for revenue, we find that the appellants have their unit in Industrial Area, Malwan, Fatehpur. They also have their another unit at Rania, Kanpur. The appellant is engaged in the manufacture of M.S. Ingots and Billets, whereas their Kanpur unit is engaged in the manufacture of M.S. Rounds, M.S. Flasts, etc. The Kanpur unit is further supplying the goods manufactured by them to a third unit under the name and stile of M/s. FAS-2, who are engaged in the manufacture of springs, which are being supplied by them to railways.

3. As per facts on record the factory at Kanpur was visited by the officers on 10.06.1999, who conducted various checks and verifications. As a result certain incriminating documents were recovered from the Kanpur unit, including the raw material registers. Scrutiny of the said documents recovered from the premises at the Kanpur unit led the revenue to belief that they are receiving the raw materials from their factory located at Malwan, Fatehpur i.e. the present appellant. During the course of further investigation, statements of various persons were recorded and certain Quality Test Certificates were recovered indicating that though the raw material was sent by Fatehpur unit to Kanpur unit along with the quality test certificate, which was required for ultimate supply of the goods to the railways, but the raw material so received by the Kanpur unit were not entered in the raw material register. As such, a view was entertained by revenue that out of the clandestinely received raw material, Kanpur unit has manufactured goods, which does not stand reflected by them in the statutory records and stands further cleared in a clandestine manner without payment of duty.

4. It is seen that on the above basis proceedings were initiated against the Kanpur unit for confirmation of demand. The same were confirmed against the Kanpur unit along with imposition of penalties on the unit as well as on various Directors. The appeals filed by the Kanpur unit as also by the directors were disposed of by the Tribunal vide its Final Order No. 02-06/2008-EX dated 10.01.2008. Vide the said order, the confirmation of demand against Kanpur unit and also imposition of penalties on various appellants were set aside by observing that the certificates were prepared by M/s. FASL Fatehpur for administration convenient and to get discharge memo issued from railways.

5. As a consequence of the developments at the Kanpur unit, revenue initiated proceedings against the present manufacturing unit located at Fatehpur by way of issuance of a show cause notice dated 21.01.2004 making allegation of clandestine removal of their product to their own unit located at Kanpur. It is seen that the basis for the proceedings in the present appellant's case were the alleged incriminating documents recovered from Kanpur unit result of the investigation and statements recorded in respect of their Kanpur unit.

6. During the course of adjudication, the appellant brought to the notice of adjudicating authority the Tribunal's decision dated 10.01.2008 passed in respect of their Kanpur unit vide which the allegation of clandestine removal, which was primarily based upon the receipt of raw material from the present appellant at Fatehpur unit, without payment of duty. While dealing with the said plea of the assessee that inasmuch as the Tribunal has already set aside the demand against their Kanpur unit, the demand in respect of the present unit would also not survive, the adjudicating authority observed as under:-

"On careful consideration of the above order of the Hon'ble Tribunal, I feel that it has got no applicability in the present case for the following reasons:-

• The Hon'ble Tribunal findings are solely based upon the observation that FSL-2, was receiving the input from other sources and took the credit. This observation obviously is irrelevant for deciding the present issue which pertains to the removal of unaccounted goods by FASL, Malwan to FASL, Rania.

• The present demand arise out of totally different set of records. The Hon'ble Tribunal has not made any observations regarding these records or their genuineness.

• Even if for the sake of argument it is assumed that charge of clandestine removal was not found established against FASL, Rania that per se, does not lead to the conclusion that there was no procurement of unaccounted raw material either it is a fact that S.S. rounds were only one of the final product off FASL, Rania. They were manufacturing other finished products also during the relevant period.

• The removal of unaccounted goods by the Noticee and the procurement of the same by FASL, Rania in this case had been detailed in records as discussed above, which is further supported by the statements of Director and the transporter. The Hon'ble Tribunal has not ruled any thin against or made any observations against these statement which corroborates the incriminating records showing removal and receipt of illicit and not duty paid goods. In view of the above factual scenario, I am of the opinion the ratio of the Hon'ble Tribunal's finding in FASL Rania's case are not applicable in the present case and as such no relief on the basis of said order of the Hon'ble Tribunal can be extended to the Noticee."

7. On going through the said differentiation made by the adjudicating authority, we do not find ourselves in agreement with the same. Grounds of allegations in the present case as also in their Kanpur unit is based upon the same set of records, which were recovered by the visiting officers from the Kanpur unit. Further, we find that while demanding duty from Kanpur unit, on the allegations of clandestine removal, it was revenue's own case that they have received the unaccounted raw material from their unit located at Fatehpur i.e. present appellant. In the present appeal also it is the revenue's case that the appellants have cleared their final products i.e. Ingots & Billets to their unit located at Kanpur, who has further utilized the same for clandestine manufacture and removal. As such it is seen that the allegations as also the evidences in both the cases are interconnected. As the Tri

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bunal has set aside the demand against the Kanpur unit, this fact leads to the inevitable conclusion that the Tribunal has not agreed with the revenue's stand that the Kanpur unit was receiving raw material from Fatehpur unit. This means that the raw material was never cleared from the Fatehpur unit, in which case the charges of clandestine removal from the Fatehpur unit to the Kanpur unit cannot be upheld. As such on this ground itself we hold that the duty demand against the manufacturing unit is not sustainable. Accordingly, we set aside the same along with setting aside the penalties on the manufacturing unit as also on all the Directors. 8. In view of the forgoing decision, all the appeals filed by the appellants are allowed with consequential relief to the appellants, if any.
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