TaxTMI 
TaxTMI 
1995 (7) TMI 209
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the goods namely ceramic tiles manufactured by the appellants shortages were found as also some excess goods were found to be lying in stock. The excess goods found were ordered to be confiscated and have been allowed clearance on payment of redemption fine of Rs. 3.00 lakhs. After hearing both the sides, it was felt that the issue for consideration lies in a short compass and with the consent of parties the appeal itself was taken up for disposal dispensing with the pre-deposit of duty and penalty levied in terms of the impugned order. The operative portion of the order was announced in the open Court. The matter was ordered to be remanded with detailed orders to follow. 2. Shri Narayanan, the learned Counsel, pleaded that the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le 9(2) as the authority competent to issue the show cause notice under the said provisions is only Collector. On an enquiry from the Bench, he pleaded that no doubt shortages were found as a result of the stock verification and the matter in such a contingency is covered under Rule 223A but inasmuch as the authorities have chosen to revoke the provisions of Rule 9(2) read with Section 11A(1) proviso the Asstt. Collector could not have legally issued the show cause notice. Adverting to the facts of the case, he pleaded that the appellants had suffered extensive damage and loss of stocks on account of heavy floods which swept the area where the appellants factory was located and as a result of the floods chaotic conditions prevailed. He plea....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in the matter. The Collector had in his order stated that "It is not understood as to why the Supdt. had not visited the unit and ascertained the loss as per the departmental procedures and that the assessees could not be put to a disadvantage for want of necessary timely action by the Supdt. The learned Collector he pleaded has accepted the loss as assessed by the insurance company. His plea is that the learned Collector should have independently applied his mind to the facts of the case and gone into the appellant's claim regarding the losses incurred including their claim filed before the insurance company before arriving at any conclusions. The learned Collector has not appreciated the appellants plea that shortages and the excesses we....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d lower authority and the order of the learned lower authority is not proper. 3.  The learned DR pleaded that the learned lower authority was fair in allowing the allowance in regard to shortage as assessed by the insurance company and has taken note of the excess as was found on second verification done between 25-7-1991 to 28-7-1991. This second verification was done in the presence of the Commercial Manger of the appellants company. He fairly conceded that the learned Collector had not gone into the appellants claim made before the insurance company and the details therein and pleaded that he has no objection to the matter being remanded for de novo consideration. 4.  We have given a careful thought to the pleas made by b....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the verification done on 29-1-1990 was not found acceptable by the Collector and another verification had to be done subsequently. There have been long gaps in the action by the authorities from the day of intimation given by the appellants regarding the damage and loss suffered by them due to cyclone and the action by the authorities for verification and re-verification. The appellants were made to wait over long period and they obviously went ahead to put their house in order and repacked the tiles in the best way they could do. The appellants plea therefore in regard to the wrong packing prima facie has some force and the same has to be examined in the background and facts and circumstances of this case. The learned lower authority has ....