CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI.

PRINCIPAL BENCH, COURT NO. I EXCISE APPEAL NO. 50318 OF 2017 [Arising out of the Order-in-Original No. RPR/EXCUS/000/COM/085/2016 dated 26/09/2016 passed by The Commissioner, Customs &

Central Excise, Raipur (C.G.) – 492 001.]

M/s J.D. Ispat Pvt. Ltd. ……Appellant Plot No. 8, 11,Industrial Growth Center, Borai, Rasmada Distt. Durg.

Versus The Commissioner, ….Respondent Customs & Central Excise, Central Excise Building, Dhamtari Road, Tikrapara, Raipur (C.G.).

AND EXCISE APPEAL NO. 50040 OF 2017 [Arising out of the Order-in-Original No. RPR/EXCUS/000/COM/085/2016 dated 26/09/2016 passed by The Commissioner, Customs &

Central Excise, Raipur (C.G.) – 492 001.]

Shri Shiv Kumar Goel, Director of ……Appellant M/s J.D. Ispat Pvt. Ltd.

Plot No. 8, 11,Industrial Growth Center, Borai, Rasmada Distt. Durg.

Versus The Commissioner, ….Respondent Customs & Central Excise, Central Excise Building, Dhamtari Road, Tikrapara, Raipur (C.G.).

APPEARANCE:

Ms. Mohana Sharda, Advocate for the appellant.

Shri Din Dayal Mangal, Authorized Representative for the Department CORAM:

HON’BLE JUSTICE MR. DILIP GUPTA, PRESIDENT HON’BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL)

FINAL ORDER NO. 50320-50321/2026 DATE OF HEARING : 18.12.2025 DATE OF DECISION: 09.03.2026 P.V. SUBBA RAO M/s JD Ispat Pvt. Ltd.¹ and its Director Shri Shiv Kumar Goel² filed these two appeals to assail the order dated 26.09.2016³ passed by the Commissioner of Customs and Central Excise, Raipur in which he decided the proposals made in the show cause notice dated 11.4.2011⁴ issued by the Directorate General of Central Excise Intelligence⁵ to JD Ispat and to Shri Goel and confirmed demand of duty of Rs. 55,18,911 on JD Ispat under section 11A of the Central Excise Act, 1944⁶ along with interest under section 11AA of the Act and imposed an equal amount as penalty under section 11AC of the Act and imposed penalty of Rs. 11,00,000/-under Rule

26 of the Central Excise Rules, 2002⁷ on Shri Goel.

2. Excise Appeal No. 50318 of 2017 has been filed by JD Ispat to assail the confirmation of duty with interest and penalty. Excise Appeal No. 50040 of 2017 has been filed by Shri Goel to assail the penalty imposed on him.

3. JD Ispat manufactures mild steel (MS) ingots and billets and was registered with the central excise department. Acting on intelligence, the officers of DGCEI searched the premises of JD Ispat and also the business premises of its broker M/s.

1. JD Ispat

2. Goel

3. Impugned order

4. SCN

5. DGCEI

6. Act

7. Rules Bajrang Enterprises on 20 & 21 March 2013 and recovered several documents which led it to believe that JD Ispat had clandestinely manufactured and removed MS ingots and billets without paying central excise duty as follows:

4. DGCEI recorded the statements of various persons including Shri Goel and Shri Gunjan Ralhan, the proprietor of JD Ispat’s broker Bajrang Enterprises and issued the SCN the proposals of which were confirmed in the impugned order.

Submissions on behalf of the appellant

5. The following submissions have been made on behalf of the appellants:

(i) The appellants deny the charge of clandestine manufacture and removal of MS Ingots and billets without paying duty.

(ii) There is no evidence of purchase of raw material, sale of goods said to have been clandestinely manufactured, their transportation as well as the profit or gains from the sale of those goods.

(iii) The appellant’s records were regularly audited and hence the department cannot allege suppression of facts. Therefore, extended period of limitation was wrongly invoked in the matter.

(iv) The Panchas were not residents of the locality of the site of the Panchnama. The Panchnama was typed in English whereas the panchas signed in Hindi which shows that the Panchas could not read or write in English. The factory of JD Ispat was searched first on 20.3.2013 and again on 21.3.2013 by two different sets of officers and the Panchnama was drawn on 21.3.2013. For these reasons the Panc