TaxTMI 
TaxTMI 
1994 (11) TMI 269
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....ture of MS ingots and SS ingots. During the course of checking of RG-I registers, it was observed that the SS ingots and MS ingots were not accounted for therein. The laboratory records maintained by the Lab Chemist, Mohamed Ilyas revealed that molten iron had been chemically analysed on several days for a number of heats in respect of induction and arc furnace, while the resultant production in RG-I was shown as `nil'. The Lab Chemist stated that the chemical test had been performed on the molten stuff in order to achieve the desired composition in the ingots in respect of each heat of the furnace. Relevant RG-I register, Form IV register and Lab Register for the period 1-7-1984 to 30-9-1984 and 1-12-1984 and 8-8-1985 were resumed and scrutiny of the same indicated that the appellants had manufactured 350 MTs of SS ingots and 84.00 MTs of MS ingots and clandestinely cleared the same without payment of duty and without accountal in statutory records. Since the lab registers for the period prior to 1-7-1984 and for October and November 1984 could not be procured the average production of both types of ingots produced and cleared between July 1984 and June 1985 was worked out on the ....
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....clea- red clandestinely during the period in question. Annexure I to the show cause notice which is the working sheet for duty calculation is given below :- Annexure I M/s. Muzaffarnagar Steel Ltd., Meerut Road, Mazaffarnagar Detail of production not accounted for in R.G. 1 etc. but evident from private records - Lab registers - Surprise check on 8-8-1985 (From 1-7-1984 to 30-9-84 and 1-12-1984 to 21-6-1985) S.No. Date on which Chemical Test per formed for molten metal Lab. Register Reference Sl. No./ Page No. No of heats tested for production Likely production S.S./M.S. Ingots (M.T.) Production as per R.G. 1 1. 2. 3. 4. 5. 6. 1. 3-7-1984 10/5 1 0.500 M.T. S.S. Nil 2. 4-7-1984 6/6 3 1.500 -do- - 3. 13-7-1984 15 12 6.000 " - 4. 14-7-1984 16 14 7.000 " - 5. 15-7-1984 17 7 3.500 " - 6. 16-7-1984 18 10 5.000 " - ....
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.... 12-1-1985 47 10 5.000 -do- - 37. 13-1-1985 48 14 7.000 -do- - 38. 14-1-1985 49 11 5.500 M.T. S.S. - 39. 15-1-1985 50 12 6.000 -do- - 40. 16-1-1985 51 13 6.500 -do- - 41. 17-1-1985 52 5 2.500 -do- - 42. 26-1-1985 8/8 13 6.500 -do- - 43. 8-2-1985 21 7 3.500 -do- - 44. 9-2-1985 22 15 7.500 -do- - 45. 10-2-1985 23 15 7.500 -do- - 46. 11-2-1985 24 11 5.500 -do- - 47. 12-2-1985 25 2 1.000 -do- - 48. 13-2-1985 26 1 0.500 -do- - 49. 14-2-1985 27 11 5.500 -do- - 50. 22-2-1985 7/7 &nb....
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.... on 78 M.T. of S.S. = 78 x 315 = Rs. 24,570=00 Duty B/F          from P.1 = Rs. 62,480=00                 Total Rs. 87,050=00 Value S.S. ingots = 292 x @ 20000/- per M.T. = Rs. 58,40,000=00 Value M.S. ingots = 70 x @ 5000/- per M.T. = Rs. 3,50,000=00        &em....
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....; .11 7. .14 17.34 8. .11 9. 095    .   7.95  1.20 17.77 .032  .038  .42 10. .090 11. .10 17.51 12. .095 13. .125 ARC FURNACE 1-7-1984 C%    Heat No    MN%   S% P%   1. .36        .5      .034     .063 2. .35 .43 &....
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....as it is not supported by any evidence. 5. The case laws relied upon by the learned representative does not advance the case of the appellants, as they are distinguishable on facts. In the case of Kashmir Vanaspati P. Ltd. v. Collector of Central Excise, reported in 1989 (39) E.L.T. 655, the Tribunal held that several of the entries in the private note book maintained by the contractor working with the appellants (based on which the demand was raised and confirmed) were not authenticated by any one's signatures, there was over writing in the entries without proper attestation and the note book was maintained by the laboratories and not by the contractor personally, and, therefore, it was not a desirable record to establish clandestine removal unless supported by other evidence such as raw material consumed, goods actually manufactured and packed, etc. - however, in the present appeal the lab register has been maintained by the lab chemist in the normal course of business, and contains all particulars such as heat nos. and percentage of the constituents of the ingots and, therefore, it is a vital and relevant document for calculation of suppressed production. 5.1 In the case o....