TaxTMI 
TaxTMI 
2014 (6) TMI 620
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....clearing its manufactured final product on payment of appropriate duty of excise and also filing periodical returns viz., RT12 returns. 2. On 10.11.1995 the Departmental officers visited the factory premises of the Appellant and conducted physical verification of final product and found that RG1 register showed balance stock of 7,762.78 kgs and whereas the physical stock available and showed by Mrs. Mary Alvares, the representative available in the factory on the said date was only 1,080 kgs. Hence, the Department noticed shortage of physical stock of final product of 6,682.78 kgs. Further the Departmental officers took into custody various documents including a diary (red color). This is based on the statement deposed by Mrs. Mary Alvar....
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....124 and except for one consignment which was supported by invoice, the other 5 consignments there was no invoice/bill details. Stopped doing business with Hindustan Rubber Factory. 4. Ashok N Hanumsagar, Ashok Tyre Works Hubli 15.11.1995 I have purchased tread rubber from Hindustan Rubber Factory with invoice and paid money in cash. Handed over the copies of invoices for goods purchased. The details of purchase of tread rubber made from Hindustan Rubber Factory are given in the table. Totally 7 invoices with invoice details, quantity and values were given. 5. M.L.David, Star Tyres 24.11.1995 Purchased 60kg tread rubber valued Rs.4,200/- from Hindustan Rubber....
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....rchase vide Cheque No.524825/18.6.1995. Original copy of the bill was produced before the department. 10. M.K.Kulkarni, Poly Sales Corporation 13.2.1996 No purchase of tread rubber made from Hindustan Rubber Factory 11. M.K. Navi, Sanjeev Tyres Services 12.3.1996 Purchased rubber from Hindustan Agencies, Kolhapur and not from Hindustan Rubber Factory, Belgaum 3. Subsequently on 20.10.1996 and 20.1.1997 the Department obtained statement from Mr. Mustafa Khan, the Manager of the Appellant which are enclosed at pp.156 to 159, Annexure V of the appeal paperbook. In the said statement, the Manager denied the allegation of any shortage of physical stock of fina....
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....uring verification the Department embarked upon a diary which showed clearances for the year 1994-95 and 1995-96 other than those reflected in statutory records and after follow-up action with some customers of the Appellant, the investigation corroborated the fact of clandestine removal either on parallel set of invoices or without any invoices and without payment of duty. Based on this it was alleged that the Appellant had suppressed the production and clearance of tread rubber during the year 1994-95 and 1995-96 involving duty of Rs.81,781/- as computed in Annexure I & II to the notice which were either without invoices or on a parallel set of invoices. 4. This is the second time the matter is coming before the Tribunal. On the first ....
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.... duty demanded. He submits that this cannot be sustained in the absence of any statement from the author of the red diary and in the absence of any admission on the part of any officers of the company/firm admitting that the clearances in red diary were made without payment of duty. He draws my attention to the statement of Shri Mustafa Khan who had clearly stated after seeing the photocopy of the red diary that he was willing to pay duty on the quantities cleared as per the red diary for which there is no corresponding entry in statutory records. No such verification with statutory record has been made. In the absence of any admission to the fact that entire clearances in red diary were without payment of duty, the demand cannot be sustain....