TaxTMI 
TaxTMI 
2014 (3) TMI 344
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.... of 30.525 MTs of MS ingots as compared to the book balance. Hence the excess quantity valued at Rs.4,28,937/- was seized. The said officers also searched the factory premises, residential premises of Shri R. Manoharan, Director of the appellant-company, Appellant No. 2 and the residence of Shri M. Murugan, of M/s. Murugan Agency, scrap supplier. During the course of search, chits were found from the residential premises of Shri R. Manoharan and bill books from the residence of Shri Murugan of Murugan Agency and were duly seized by the officers. The appellant deposited an amount of Rs.20 lakhs vide TR6 challan dated 29.7.2003 during the investigation. A show-cause notice dated 21.1.2004 was issued proposing to confiscate the seized goods of....
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....so stated that Shri Rajkumar, during examination at the time of hearing, denied that removal of ingots on the basis of chits. Regarding the bill book found at the residence of Shri Murugan, it is stated that there is no evidence that the same were properly sealed in the presence of Shri Murugan. Further, Shri Murugan, during cross-examination, stated that the statement was recorded under threat. It is also stated that the report dated 18.12.2004 of Shri A.R. Natarajan, Chartered Engineer stating the high consumption of electricity as 665 units per tonne is without considering the variation in manufacture and losses, break down, difference in power supply, labour factors, quality of raw materials and therefore the allegation of clandestine r....
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....to the Government Examiner of Questioned Documents for deciphering the impressions available on the duplicate copies of the said bill books. The Government Examiner of Questioned Document, Hyderabad, in his opinion dated 14.11.2003 and 18.10.2004 stated that the bill books indicated most of the scraps sold to the appellant-company. Thus it is clearly evident that the appellant received the raw materials namely scarp from M/s. Murugan Agency without any documents. 7. The learned counsel contested the Chartered Engineer's opinion insofar as does not consider the manufacturing process, nature of raw materials while ascertaining the electricity consumption. We find from the impugned order that during cross-examination Shri Natarajan, Chart....