2004 (6) TMI 424

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the course of search at appellant's premises on 25-1-1994. (ii)       Imposition of redemption fine of Rs. 50,000/- in respect of goods valued at Rs. 85,305.10 seized from the godown of appellant. (iii)      Imposition of redemption fine of Rs. 3,00,000/- in respect of manmade fabrics admeasuring 54,990 L. Metres valued at  Rs. 7,80,797/- and cotton fabrics admeasuring 42,398 L. Metres valued at Rs. 7,03,476/-, which were seized from appellant's premises on account of their not being entered in the RG1 register. (iv)      Demand for duty of Rs. 52,73,773/- in respect of processed manmade fabrics allegedly cleared in the guise of cotton fabrics by ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by the department. Since duty payment documents/challan were produced, it is not found to be incorrect the confiscation cannot be upheld, and consequently no fine can be imposed on the appellant. 4. Insofar as redemption fine of Rs. 3,00,000/- on 54,990 L. Metres of man-made fabrics and 42,398 L. Metres of cotton fabrics which were seized within the factory premises on account of not being entered in the RG1 register, it was submitted that it was an admitted position that the stock in question was in process and that it had not reached the RG1 stage. Appellant submits that this fact is evident from Para 3 of the impugned Order-in-Original. Appellant also submitted that even otherwise the goods in question as well as those at Sr. No....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....;       Gray Inward Register wherein Column 5 is stated to contain the correct description of the fabric. Description such as 80 x 20, PV, Texo etc. have been interpreted to refer to predominantly polyester fabric. (ii)       Inculpatory statements of the appellant's Director and two employees to the effect that the description given in the Gray Inward Register was correct. (iii)      Statements given by 3 persons who supplied gray fabric to the appellant wherein they stated that, based on the prices shown in the grey invoices, they were able to confirm the correctness of the description given in the Gray Inward Register. 6. Examining the mate....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t page Nos. 89 and 90 of the Appeal Memorandum clearly show that the said fabrics were 100% cotton fabrics. This fact when considered that the Appellant also submitted that the entries made in respect of these two lots in its Lot Register, a statutory record, tallied with the result of the test report and which, as per the appellant's description, leads to conclude that the statutory records depict the correct position. The sole basis of the department's case that the Gray Inward Register mentioned the correct description of the quality now proved to be incorrect, consequently the same could not be relied upon. (c)        The statements of the Director and employees were recorded under duress and affida....