2006 (10) TMI 273

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....e Central Excise department visited the premises of the appellant on 19-3-1999, and did the physical verification of the stocks. The officers found excess quantity of finished goods than the recorded balance in statutory records and the officers also found that the appellant had not debited the duty amount in PLA/RG 23A Part II for the clearances made by them on 18-3-1999. A show cause notice was issued to the appellant proposing confiscation of the seized excess finished goods found and for confirmation of demand of duty not debited. Appellant resisted the show cause notice on the grounds that they had enough balance in their PLA and RG 23A Part II and the debits were not made as the clearances were made late in the night of 18-3-1999 and ....

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....e submissions made by both sides at length and perused the records. It is seen from the records that the revenue officers visited the factory premises of the appellant on 19-3-1999 and they found excess finished goods not recorded in the statutory records and non-debit of the duty for the clearances made on 18-3-1999. It is seen that the officers recorded statement of Shri Giri who was looking after the day-to-day affairs relating to excise of the appellant and in his statement he has said as under : "Q4. How and when you enter the production in the RG 1 register. A. I go to manufacturing section at about 8.30 a.m. in the morning and take the stock of 24 hrs. production from Sh. Umesh Singh who look after the production. Since the pro....

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....n Register. Q6. On 18-3-99 you have cleared cement bags and fertilizer bags vide Invoice no. 620 to 624 dated 18-3-99. Invoicing a duty of Rs. 50.220.00 but you have not debited the duty amount in your P.L.A./R.G. 23A Part-II register why? A. Clearances were made at 21.30 hrs. in night and I was not aware of debiting the duty at the same time, therefore due to lack of knowledge this mistake has happened. Q7. Since you have not debited the duty why these clearances should not be treated as removal without payment of duty? A. Since I have issued Invoices under Rule 52A and there in sufficient balance in RG 23A Part - II to cover the entire amount of duty, my only fault is that I did not debit the duty for which I have already expl....

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.... assessees can account for the excisable goods in fully manufactured condition in the RG 1 register before the completion of the 1st shift of the next "day". [Based on Chief Commissioner, Bombay's letter D.O.F. No. IV/16-83/PCU/BCX/94, dated 19-7-1995] 7. It can be noticed from the above reproduced circular that the entries in the records of the day's production can be made by the assessee before the completion of the end of the First shift of the next day. In the case before me the appellant could have entered the production of 18-3-1999 before end of the first shift of 19-3-1999. In view of the facts and circumstances as mentioned above, to my mind the confiscation ordered by the lower authorities is unsustainable and is liable....