TaxTMI 
TaxTMI 
1995 (2) TMI 187
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....uction and clandestine removal of video magnetic tapes during the period 11-2-1990 to 24-7-1992 (the impugned goods have been held to be liable for confiscation and due to their non-availability for the same, an amount of Rs. 6,40,000/- has been ordered to be appropriated from the bank guarantee towards fine in lieu of confiscation) and imposing penalties of Rs. 1 crore upon the applicant company, Rs. 50 lakhs upon its Managing Director, Shri Satinder Kapur and Rs. 5 lakhs upon its General Manager, Shri S. Mahadevan. 2. Shri L.P. Asthana, learned Counsel appearing on behalf of the applicants submits that the applicants commenced production of video pancakes in December 1990 and they had been maintaining all statutory records and pay....
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....tory were also examined. Learned Counsel submits that the main allegations of the Department are : (a) that the Quality Control grading sheets maintained by the employees posted in the Quality Control and Packing Section contain details of production and its grading for the period 11-12-1990 to 31-12-1991; (b) The Swastik duplicate note book alleged to have been maintained by the employees in the packing section contained details of production and grading between 4-6-1992 and 24-7-1992; Both the above documents were maintained as per the directions of the management on a day-to-day basis in the routine course of business. (c) The figures of production recorded in the Quality Control sheets and the note book worked....
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....er, this plea of rejection at packing stage has been discarded solely for the reason that neither Shri Mahadevan nor other employees, Shri Ratan Singh or Mrs. Jyoti Thakur (AE, Quality Control) or Shri S. Batra, Senior Manager (Works) had raised this point of further checking/inspection after the video pancakes had been transferred from the Quality Control Section to the Packing Section. 3. Regarding the document at Sl. No. (b), learned Counsel submits that Swastik duplicate note books were not authorised by the Management and was only a rough record maintained by some employees for their own purpose. Shri Asthana also submits that there has been an error in calculation of the quantity of alleged suppressed production as the product....
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....o objection to the prayer for remand. 5. We have carefully considered the submissions of both sides. We see great force in the submission of the learned Counsel that the physical verification of rejections was necessary particularly in view of the rejected pancakes having been verified by the Central Excise Authorities, including the assessment of monthly returns specifically showing the cumulative balance of wastes. We also note that though the applicants had applied for fixation of norms of wastage due to the high rate of rejection in their Unit, no norms were fixed. We agree with the learned Counsel that the method of average percentage cannot be applied for arriving at the quantity of alleged suppressed production during the per....