AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
1990 (2) TMI 188
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....aughter-in-law. The authorities on the day of the check found that in the first factory there was no stock of matches and there was no stock balance in the RG.l; the manufacture of matches was going on and the cardboard outershells used for match splints contained the name of M/s. Surendran Match Works on their skillets. They also found that oven, hot plate and racks were available and the dipping plate was also there in the verandah. They also found 150 frames in the factory. The splints, however, were found to have been filled into the cardboard outershells bearing the address of M/s. Surendran Match Works and these were found to be 48 gross and these were seized. In the other factory of Surendran Match Works they did not find any manufac....
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....ed in Notification 22/82 during July, 1985 and that M/s. Vasuki Match Works was not entitled to the benefit of concessional rate of duty at Rs.1.60 per gross. The appellant was informed that clearances of 10375 gross of matches effected from appellant's unit from 1-4-1985 to 31-3-1986 were not entitled to concessional rate of duty at Rs.1.60 per gross and they were called upon to pay the differential duty holding the goods assessable at the rate of Rs.4.50/3.50 per gross during the year 1985-86. The duty was also demanded in respect of splints alleged to have been removed from M/s. Vasuki Match Works to M/s. Surendran Match Works during the year 1985-86 and also in respect of the cardboard matches and longer period of limitation under Secti....
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....rom the employees of the factory. The learned Collector has observed that since the licensees of the factories were available at the time of the visit of the officers there was no necessity to obtain any statement from the employees and that the mahazar drawn by the officers was nothing but what the officers have observed at the time of their visit and that the contention of the parties that the officers have on their own presumption and assumption levelled charges against them in the show cause notice was also not correct. The learned Collector also took note of the fact that no record of the raw material was found maintained in spite of the fact that the Collector had issued Trade Notice calling upon the match units to maintain raw materi....
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....t's unit. He pleaded that no investigation was done to ascertain the fact from the workers regarding the use of the raw materials and manufacture of the goods. He pleaded that both the units had the same label registered for the manufacture of the matches and some mix up because of that would have occurred. 3. The learned D.R., on being pointed out about the absence of any investigation to ascertain the facts as to the operations in the two units, stated that no doubt the authorities could have done better job of investigation but the fact remains that some of the boxes of the other unit were found in the appellant's unit and the authorities have rightly drawn the inference as held by the Collector. 4. We observe that the authorities in t....
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....riod preceding the day of the visit of the officers. The Collector has cast the burden on the appellant to prove that the matches were in fact produced in the two units. He has not stated what sort of proof was required in this regard. The proof in such cases has to be found by investigation and by recording the statements from the workers and also from finding out as to who had been controlling the two units and who had been handling the procurement of raw materials, issue thereon, and also the sale of the matches. It is pointed out that the match units are under physical control of the Department and, no doubt, as mentioned by the Collector, the officers are not physically posted in each unit but the fact remains that the release of the g....