1999 (3) TMI 381 - AT - Central Excise

Appeal partly allowed; directions given for compliance. Duty demand confirmed; questions on goods removal.

SUNVIJAY RE-ROLLING & ENGG WORKS PVT. LTD. Versus CCE., NAGPUR

The appeal was partially allowed with directions for the Commissioner to act in accordance with the law. The demand for duty on mild steel channels and ... Modvat credit Issues involved: Appeal against order confirming demand for duty on removal of iron and steel products without payment of duty, confiscation of seized goods, penalty under Rule 173Q.Details of the Judgment:1. Major Demand for Finished Products: - Appellant cleared 2146.545 metric tonnes of finished products without payment of duty. - Basis for demand: Entries in labour pay book showing payments for loading and unloading. - Goods manufactured on job work basis for M/s. Tata Iron and Steel Company (TISCO). - Part of goods sold to M/s. Prakash Traders, a concern of a director of the company.2. Demand on Mild Steel Channels and Angles: - Demand of Rs 3.17 lacs based on a production register recovered from factory premises. - Discrepancies between production register and RG 7 register entries based on actual weighment.3. Labour Pay Book Discrepancies: - Collector found discrepancies in loading details in the labour pay book and Central Excise gate passes. - No gate passes issued for some trucks, despite freight payment. - Labour contractor's statements did not support appellant's claim of duty payment.4. Ownership of Adjacent Plot: - Ownership of adjacent plot where goods were stored and sold raised questions. - Lack of evidence regarding ownership of the plot by the appellant. - Failure to inform authorities about ownership of the plot during investigations.5. Clandestine Removal and Duty Payment: - Appellant failed to demonstrate duty payment for goods removed from the factory. - Evidence of payment for removal considered sufficient to establish removal without duty payment.6. Modvat Credit Disallowance: - Disallowance of Modvat credit for inputs found outside the factory. - Dispute over permission for storing goods outside the factory gate affecting credit eligibility. - Confiscation of goods stored outside the factory gate questioned.7. Confirmation of Order: - Appellant did not contest demand on mild steel channels and angles, leading to confirmation of that part of the order. - No interference with other portions of the order except for the Modvat credit issue. - Appeal allowed to a certain extent, with directions for the Commissioner to act according to the law.