TaxTMI 
TaxTMI 
2004 (3) TMI 583
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....llants are clandestinely manufacturing and removing aerated waters without payment of duty, the Central Excise officers visited their factory premises on 23rd May, 1994. On a scrutiny of RG-1 and Form IV register with physical stock, they found that 199 crates of Bisleri Soda and 453 crates of Thumsup were short and 14 units of essence of Limca and Thumsup in excess. They also found 30,900 Nos. of crown corks and 446.25 Kgs of Citric Acid short, than the recorded balance in the statutory records. Shri Pradeep Kesarikar was the only responsible officer available in the factory who informed the officers that there was no production on 21-5-1994 and 22-5-1994 on account of holidays. The excess quantity of goods along with incriminating records....
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.... authorities. He stated that this demand is based on the basis of 139 requisition slips. Out of these 139 slips 'quantity issued' has been filled in 15 slips only and the entries in the Form IV/RG I Registers were made in respect of these slips. All the quantities of raw materials intended for, were not utilized in full in the production of finished goods, as such usage of raw material and production of finished goods, depends on market requirements. The requisition slips do not by themselves constitute direct evidence on which the charge of production and clandestine removal can be sustained. Production of finished goods as per the standard formula particularly in the absence of any cogent, reliable, and conclusive evidence in respect of t....
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....to the requisition slips, if actually not used in the production of the finished goods, due to exigencies of demand, such excess raw material including essences, are returned to the Stores Department. Only such raw material as is actually utilized is accounted for in Form-IV and R.G. 23A Register. Shri T. Vinayak Ravi Reddy in his statement dated 6-9-1994 did not admit that the estimated excess quantity was actually produced nor that he had received the sale proceeds thereof. He only stated that on the basis of requisition slips, duty works out to Rs. 10,15,622.40. He further pleaded that process loss of 15% may be allowed and the price may be taken on cum-duty price. 6. Shri Kumar Santosh, ld. SDR contested the claims made by the a....
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....rectly maintaining the production and the shortages of raw materials itself shows that the goods were produced out of these and clandestinely removed. Shri T.Vinayak Ravi Reddy, President of Annapurna Industries Ltd. (the appellant) in his letter dated 24-10-1994 addressed to the Superintendent of Central Excise, Anti-Evasion (Gr.III), Basheerbagh, Hyderabad has stated that the sale proceeds of Rs. 20.58 lakhs (Rs. 26,865/- for shortage and Rs. 20,31,244/- clearances as per requisition books), the company might have received part of the above sale proceeds and part may be receivable in future as it is not possible to identify the sale proceeds with that of the quantities manufactured and cleared as it is a running account. He conceded that ....
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....materials were available in the factory which were issued under 139 requisition slips to the production department. No evidence was shown by the appellants that the raw materials which were sent to the production department was returned back to the Stores. It was also found that the appellants were recording only that quantity of raw material in the Form IV Register for which they were showing the production in RG-1 register. Thus, they were not correctly recording the receipt of the raw materials in their Form IV register. It was also found by the officers that there was a shortage of 446.25 Kgs of Citric Acid. There was a shortage of 886.81 gross of crown corks and 199 crates of Bisleri Soda and 543 crates of Thumsup. It clearly shows tha....