CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL ALLAHABAD REGIONAL BENCH - COURT No.II (Arising out of Order-in-Appeal No.953 & 954/CE/Alld/2023 dated 02/05/2023 passed by Commissioner (Appeals) Central Excise & Service Tax, Allahabad)

M/s Hari Om Industries Pvt. Ltd., ….Appellant (Arazi-841 & 825, Bengali Purwa, Pratappur, Kanpur)

VERSUS Commissioner of Central Excise &

CGST, Kanpur ….Respondent (117/7, Sarvodaya Nagar, Kanpur-208005)

WITH Excise Appeal No.70397 of 2023 (Arising out of Order-in-Appeal No.953 & 954/CE/Alld/2023 dated 02/05/2023 passed by Commissioner (Appeals) Customs, Central Excise & Service Tax, Allahabad)

Mr. Virender Kumar Gupta, of ….Appellant (M/s Hari Om Industries Pvt. Ltd., Arazi-841 & 825, Bengali Purwa, Pratappur, Kanpur)

VERSUS Commissioner of Central Excise &

CGST, Kanpur ….Respondent (117/7, Sarvodaya Nagar, Kanpur-208005)

APPEARANCE Shri Amit Awasthi, Advocate for the Appellant Shri Santosh Kumar, Authorised Representative for the Respondent CORAM: HON’BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL)

FINAL ORDER NOs.70339-70340/2025 DATE OF HEARING : 21 April, 2025 DATE OF PRONOUNCEMENT : 25 June, 2025 SANJIV SRIVASTAVA:

These appeals are directed against Order-In-Appeal No.

953/CE/Alld/2023 & 954/CE/Alld/2023 dated 02.05.2023 of the Commissioner (Appeals) Central Goods and Service Tax and Central Excise, Allahabad. By the impugned order, Order-in- Original No.12/CE/Hariom Industries/AC/Div.IV/2022 dated

16.11.2022 holding as following has been upheld:

“ORDER i) I hereby confirm the demand of Central Excise duty amounting to Rs.33,77,422/- (Rupees Thirty Three Lac Seventy Seven Thousand Four Hundred Twenty Two Only) upon M/s Hariom Industries Ltd., Arazi 841 & 825, Bengali Purwa, Bhauti Pratappur, Kanpur, under the proviso to Section 11A(4) of the Central Excise Act, 1944 read with Section 174 of the CGST Act, 2017, against clandestine production and clearance of kraft paper, ii) I hereby appropriate Central Excise duty amounting to Rs. 25,00,000/- (Rupees Twenty Five Lakhs Only) deposited during investigation by M/s Hariom Industries Ltd., Arazi 841 & 825, Bengali Purwa, Bhauti Pratappur, Kanpur, against the liability confirmed at S.No. (i)

above;

iii) I hereby confirm the demand of CENVAT Credit of Service Tax, taken and utilized wrongly, amounting to Rs.3,19,176/- (Rupees Three Lac Nineteen Thousand One Hundred Seventy Six Only) from M/s Hariom Industries Ltd., Arazi 841 & 825, Bengali Purwa, Bhauti Pratappur, Kanpur, under section11A(4) of the Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004 and Section 75 of the Finance Act, 1994, read with Section 174 of the CGST Act, 2017;

iv) I hereby confirm the demand of Central Excise duty the amount of Rs.74,827/- (Rupees Seventy Four Thousand Eight Hundred Twenty Seven Only) from M/s Hariom Industries Ltd., Arazi 841 & 825, Bengali Purwa, Bhauti Pratappur, Kanpur, under section 11A(4) of the Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004, read with Section 174 of the CGST Act, 2017 against clandestine removal of HDPE fabric 'as such';

v) I hereby order to recover interest under Section 11AA of Central Excise Act, 1944 read with Section 174 of the CGST Act. 2017, payable at the rates fixed by the Central Government on the amounts of Central Excise duty/ CENVAT Credit confirmed at S.No. (i), (iii) & (iv)

above;

vi) I hereby impose total penalty amounting to Rs.37,71,425/- (Thirty Seven Lacs Seventy One Thousand Four Hundred and Twenty Five only) upon M/s Hariom Industries Ltd., Arazi 841 & 825, Bengall Purwa, Bhauti Pratappur, Kanpur under Rule 25 of Central Excise Rules, 2002 and Rule 15 of Central Excise Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 & Section 78 of the Finance Act, 1994, read with Section 174 of the CGST Act, 2017 for their acts of omission and commission as mentioned in preceding paras.

vii) I hereby also impose penalty of Rs.37,71,425/- (Thirty Seven Lacs Seventy One Thousa