TaxTMI 
TaxTMI 
1990 (10) TMI 235
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....003-70004-23061 & 23064 and these sorts were covered under classification List Nos. 30/85-86 and 5/86-87. During the period November 1985 to January 1987, they manufactured and cleared yarn and fabrics of different varieties and it appears that they paid a total Central Excise duty of about 6½ crores. Certain investigations were conducted by the Central Excise Deptt. after visit by them to the appellants' unit on 14-4-1987 when they resumed records of the appellants. Subsequently, the Deptt. issued a show cause notice on 14-3-1988 and the allegations were, in effect, as follows : "On further examination of the records, it was revealed that the assessee have declared the width of same sorts number quality numbers of their products i.....
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....idth of the fabric as 91 cms. so as to take the advantage of slab where lower rate of duty is payable. The packing slips despatch advices pertaining to above referred sorts of which the width had been given as 88/89 cms. were sorted out and a chart Annexure 'A' prepared which is enclosed. The total quantum of the fabrics of these sorts on which the assessee had paid the short duty came to 1,39,178 metre of 1,23,254.51 Sq Metre. Thus, the Assessee have evaded the excise duty amounting to Rs. 2,46,509.02 @ 2/- per Sq. Metre leviable on 1,23,254,51 Sq. Metre of fabrics. The assessee was also asked verbally on 14-4-1987 to explain his position in this regard. Shri Prakash Maheshwari, Commercial Manager of the Unit in his written explanation su....
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....orts pertained to a special order received by the Co. for fabrics width 91 cms. as given. They explained that the packing shows that the width was 91 cms. and went on preparing slips in these as well as other sorts showing the width as 89 cms. They stated that the normal/standard width of their fabrics was always 89 cms. and pleaded that as it is only an error by a clerk the explanation may be accepted. They further relied on copies of AR-3 under which fabrics were received by them from the processing Units M/s Bhilwara Processors to show that the width of the fabrics was 91 cms. when received after being processed. They stated in the reply that some fabrics from these sorts were still lying in their Packing Deptt. and the officers were req....
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..... As a result in the instant case the actual sale-price (cum-duty price) not having changed, the higher rate of duty demanded and paid by them should be deducted from such price as a result of which the assessable value would work out to Rs. 2295/- and consequently the goods would be liable to duty under Heading 5512.11 and there could be offence committed by the appellants. They denied any wilful mis-disclaration, and argued that the demand is hit by limitation. 4. Before us the learned Advocate for the appellants reiterated the grounds in great detail. He submitted that there was no reliable evidence to substantiate the Department's charges. He argued that in not having under-taken the verification of the width of available fabrics,....
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....ned Advocate, is that the packing slips should be discarded as evidence they being the result of a 'clerical error' and their not being satisfactory documents. We cannot accept their arguments on either point. Once the appellants documented the details of the fabrics, repeatedly it is not open to them to deny the correctness thereof by a mere oral plea of clerical error. There should be no end to proceedings if such a weak ground is accepted. The appellants did not produce any documented evidence to the contrary. Therefore and for the reasons recorded by the Collector in the impugned order, the packing slips cannot be ignored as evidence. That they are not prescribed by Law is not a ground to ignore their evidential value. 7. The subm....