2004 (7) TMI 571

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.... 26-11-95 and found certain stocks of biscuits not accounted. They also searched another firm engaged in the manufacture of biscuits on the next floor by the name and style of M/s. Diamond Biscuit Company. They found that both firms manufacture biscuits with the brand name Diamond. Certain stocks of biscuits were found unaccounted and documents were seized. On subsequent visit attempt, to remove biscuits, which were product of the appellant-firm, without preparation of bills and challans of M/s. Diamond Biscuit Company was thwarted and goods seized. After considering the material in the enquiries, evidences, a show cause notice was issued proposing - (i)      Demand of Excise Duty of Rs. 44,94,276/- for the appel....

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.... remove the clearance of M/s. Diamond Biscuit Company as that of M/s. Diamond and removal without preparation of invoice is established by the seizure of biscuits from the tempo. (c)     The diary/notebook alleged to have entry of maida and sugar amounting to 2,19,720 kgs. in one month i.e. October, 1995 and consumption of the same, for manufacture of the unaccounted biscuits and taking the same figure per month for all the 4 months of the year 1995/96. Assuming the same level of receipt of maida and sugar and producing the biscuits from that, as per the figures of October, 1995, for the total factory production was arrived. Duty demand of Rs. 44,94,276/- has been calculated on such production as per Annexure to the S....

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....a and sugar, as receipts in October to constantly be the receipts from 1st April, 1995 to March, 1996 as clandestine unaccounted receipts of raw material maida and sugar. Manufacture and clearance of biscuits unaccounted remain at the level as per purchases of maida and sugar in October, 1995. The appellant further gave a plausible explanation of 25% of maida/sugar quantity to be used in the manufacture of biscuits and remaining used up by sale in speculative market on profit, since October 1995 was month of Diwali/festival when the demand and price of such commodity would go up. That explanation has been dismissed on the grounds that resale bills have not been produced. When there are no purchase bills for the speculative hoarding of maida....