2011 (7) TMI 188
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.... of grey fabrics, grey fabrics in process and the finished products was checked. As regards the grey fabrics in stock, as against the recorded balance in Form-IV register of 1,49,089 sq.mtrs. of fabrics, the actual stock of fabrics was found to be 1,46,600 sq.mtrs. and thus, there was shortage of 2489 sq.mtrs. of fabrics. Shri Deepak Srivastava, Excise Clerk and Shri M.P. Agarwal, Managing Director of the company could not give any satisfactory explanation and hence, the officers were of the view that this much quantity of grey fabrics after being processed had been cleared clandestinely without payment of duty. 1.2 As regards the grey fabrics in process , as per the appellant s records, 1,91,975 sq.mtrs. of grey fabrics was suppose....
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...., he was directed by Shri M.P. Agarwal, Managing Director to add the figure of 8 before the figure of 4136 making it 84136 , which he did, that Shri M.P. Agarwal assured him to provide production slips for the excess production shown in the register within two hours, that no packing of the fabrics had been done in the factory after visit of the officers on 18.08.98, which meant that there is no production in the factory on 18.08.98, and that after looking at the entries in the RG-I register fromd 22.04.98 onwards, he could say that in the past there had never been such a huge production in a single day. The officers were, therefore, of the view that the actual production recorded in the RG-I register at the time of their visit was 4316 sq. ....
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....xecution of bond, the respondent were asked to pay an amount of Rs.3,33,500/- toward redemption fine. 1.6 Against the above order of the Addl. Commissioner, the respondent filed an appeal before the Commissioner (Appeals). The Commissioner (Appeals) vide Order-in-Appeal No.550-CE/APPL/KNP/2004 dated 01.10.2004 set aside the order of confiscation of the PV Shirting and order of redemption fine. As regards the duty demand of Rs.8,960/- on the shortage of 2489 sq.mtrs., the same was set aside and the duty demand of Rs.2,30,670/- on alleged shortage of 64075 sq.mtrs. of grey fabrics, was reduced to Rs.60,018/-. Penalty imposed on the respondent was also reduced to Rs.70,000/-. Against this order of the Commissioner (Appeals), the Revenu....
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....of PV Shirting in the RG-I Register to conceal the fact of unaccounted production, that since non-recording of the production in RG-23A- Part-I Register stands established, the unaccounted goods were liable for confiscation and the respondents were liable for penalty and that the order of confiscation and penalty has been wrongly set aside by the Commissioner (Appeals). 2.2 Ms. Sukriti Das, Advocate, ld. Counsel for the respondent, defended the impugned order by reiterating the findings of the Commissioner (Appeals) and pleaded that as observed by the Commissioner (Appeals), stock of 47403.30 sq.mtrs. of PV Shirting could not be treated as finished as the same was found wrapped in polythene and was not required to be entered in RG-I....
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....te in this case is as to whether there was unaccounted stock of finished PV Shirting in the respondent s factory at the time of visit of the central excise officers to the factory on 18.08.1998. The department s allegation is that at the time of visit of the central excise officers to the factory on 18.08.98, the RG-I Register contained entries regarding production and clearances of the goods only upto 17.08.98 and the balance of PV Shirting recorded in the RG-I Register was 4316 sq.mtrs., while the actual balance available in the factory at that time was 1,31,719.30 sq.mtrs. It is also alleged that as soon as the officers team entered in the factory on the instruction of Shri M.P. Agarwal, Managing Director of the respondent Company, Shri ....
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....d originally been recorded in the RG-I Register and immediately after the officers visit, the same was hurriedly changed to 84316 . Shri Deepak Srivastava, Excise Clerk in his statement recorded under Section 14 of the Act has clearly stated that the figure 8 was added before the figure 4316 immediately after the officers visit to the respondent s factory and this was done on the instruction of Shri M.P.Agarwal, Managing Director of the respondent company who promised to send the production s slips to justify that much production on 17.08.98. Though Shri Agarwal denies having given any such instruction, we are of the view that statement of Shri Deepak Srivastava in this regard is a true statement. Even if the Commissioner (Appeals) s findin....