TaxTMI 
TaxTMI 
2005 (4) TMI 332
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....manufacture of Pan Masala during the period in dispute i.e. 2/1998 to 6/1998, while the appellant No. 2 was its Managing Director and the appellant No. 3 was accountant during that period. The duty has been confirmed against the company on the ground that on 6-1-1998 shortages of some raw material i.e. Supari, Katha, Cardamom, Tobacco & Rolls was found by the Officers after carrying out the physical verification of the stock. The penalties have been imposed on the other two appellants who allegedly helped the company in the clandestine manufacture and removal of the final product i.e. Pan Masala. 3. We have heard both sides and gone through the record. From the record, we find that shortages of rolls found was 989.745 kgs. This shortage, t....
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....ers reported to the Department that the firm did not exist. This contradictory position/report of the Officers goes long way to show that no genuine and bonafide offer was made to verify the stock of M/s. Gopal Grinding Industry. The appellants had also even placed on record the copies of their ledger wherein they had made the entry regarding sending of the Supari to that firm for cutting. The documents showing payment by them as job work charges to that firm had been also produced by them. They had even produced the statement of the bank account of that firm to prove that the payment made by them was credited to their account. In the face of these documentary evidence, it is difficult to accept the plea of the Revenue that the firm, M/s. G....
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....hich neither any shortage nor any excess was found in the factory. There is also no evidence on the record to prove the excess receipt of raw material by the appellants, excess consumption of energy, excess employment of labour by them for manufacture of the excess Pan Masala. No evidence, whatsoever has been collected to prove the clandestine sale/clearance of the goods of Pan Masala by the appellants in the market to various buyers. No statement of any buyer to whom the Pan Masala was sold during the period in dispute nor of the transporter who transported the goods from the factory premises of the appellants to the place of the buyers had been brought on record. 7. It is well settled that the charge of clandestine manufacture and r....