2006 (5) TMI 328

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..... Nair, JDR, for the Respondent. [Order]. -  The appellants are SSI unit engaged in the manufacture of clutch plates. The total value of the clearance during the year 1995-96 was Rs. 14,62,323.90/-. However, on visit of the Central Excise officers in the factory it was found that they have cleared finished goods amounting to 18,00,865.20 on the basis of delivery challan which were meant....

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.... the purchaser. The goods cleared under delivery challan were several times returned and therefore there was no requirement of accounting them in clearance. Since they were not under excise control they were not required to follow Rule 173H produce for return of goods etc. They referred to Cegat decision in the case of T.G.L. Poshak Corporation v. CCE, 2002 (140) E.L.T. 187 (Tribunal) wherein it w....

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....is case the demand is confirmed solely on the basis of the statement of the partner which has been retracted by filing affidavit by one of the partner who was mainly looking into the business. Since the statement was retracted within 2-3 days there was a obligation upon the department to investigate further by contacting or searching the buyer to whom the alleged goods have been supplied when the ....