TaxTMI 
TaxTMI 
2010 (4) TMI 446
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....y 1997 they intercepted a truck bearing No. MP - 25B - 0003 which was found transporting Ferro Manganese Slag (Fe Mn Slg) outside the factory premises of the appellants. The said consignment was not accompanied by proper documents revealing discharge of duty liability. Secondly, the investigation commenced and on conclusion thereof a show cause notice dated 1/1/98 came to be issued to the appellants requiring the, appellants to show cause as to why the duty amounting to Rs.493.76 should not be recovered in relation to 15.430 M.T. of Ferro Manganese Slag valued at Rs. 6,172/-, why the said truck should not be confiscated for having found transporting Ferro Manganese Slag in contravention of the provisions of law, and Central Excise Duty amounting to Rs.6,30,334.65 in relation to 207.711 M.T. of Ferro Manganese Standard Grade and Ferro Manganese Powder valued at Rs.42,02,231/- which was found short in the factory of the appellants on 4th July 1997 should not be recovered, besides demanding the interest and imposing penalty. The notices were also issued to the authorised signatory, truck driver and owner of the truck. The proceedings were contested by the appellants and ultimately by ....
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.... private records, and comparing the same with the records regarding the clearance of the product in terms of invoices issued under Rule 52A, the following situation was revealed : S. No. Description of goods C.B. as on 31.5.97 as per RG-1 (MT) Production of 6/97 & 1.7.97 as per Private Production register (MT) Total (MT) Clearance as per inv. Issued under Rule 52A (MT) C.B. as on 3.7.97 which should have been entered in RG-1 register (MT) 1. Ferro Manganese Standard grade 261.087 343.000 604.087 383.431 220.656 2. Ferro Manganese off grade 16.205 20.000 36.205 NIL 36.205 3. Ferro Manganese (Slag Contaminated) 0.200 NIL 0.200 NIL 0.200 4. Ferro Manganese Powder 15.000 27.205 42.205 18.600 23.605 5. Ferro Manganese Slag 341.958 440.250 782.208 525.695 256.513 It was further revealed pursuant to the physical verification of the products in the factory premises of the appellants as also consequent to the Panchnama carried out of whatever found in the stock in the factory premises and on inquiry with the authorised signatory of the appellants namely Shri Heman....
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.... records. He further submitted that the purpose of private record was to keep check on the stocks and to have a rough idea of the estimate of the final production on the basis of the product which comes out of the use of furnace. He further submitted that the products which were yet to be completed in all respects were stored in the heap of sands and it is only when they are ready for clearance, the same were entered in the RG-1 register. Till then, record thereof was maintained in the form of private records. Considering this aspect, according to the learned advocate, there was no case of any clandestine removal of the final product. He further submitted that the department failed to collect cogent evidence to support their allegation of clandestine removal of the goods by the appellants. No buyer records were verified, neither the respondents had examined any transporters who might have transported the allegedly clandestinely removed goods. There is nothing to show excess consumption of electricity, which could corroborate higher production and there was no excessive intake of raw materials to substantiate the allegation of clandestine manufacture and removal of final product. ....
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....d this record with the invoices which were issued under Rule 52A and taking into consideration the available stock in the premises on the day of inspection, indeed, as rightly pointed out by the learned representative of the department, we find no case for interference in the calculations made by the authorities below and the findings based thereon. 10. The contention of the appellants that private records were merely for the purpose of disclosing the goods in unfinished form and/or the estimate of the final product do not find any support from the materials on record. It is to be noted that the private records were maintained by the appellants themselves. The entries therein are not disputed by the appellants. The entries therein tally with the stock, which was available in the premises and physically verified by the departmental officers in the presence of the authorised signatory of the appellants. In fact, the appellants had never raised the plea either before the Adjudicating Authority or before the Commissioner (Appeals), or even in the memo of appeal that the entries in the private record were merely relating to the estimate of the production. On the contrary, the entries....