TaxTMI 
TaxTMI 
2014 (10) TMI 805
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....f salary file, it was alleged that the appellants manufactured and cleared 38,370.840 kgs. of 10's cotton cheese yarn without payment of duty and without proper records. A show cause notice dt. 18.3.2002 was issued demanding Central Excise duty of Rs. 1,80,036/- on the said quantity and also proposed imposition of penalty under Section 11AC and also penalty on Shri R.P. Lakshmana Perumal, M.D. The Adjudicating authority dropped the demand and further proceedings initiated against the appellant and Shri R.P.Lakshmana Perumal. The Revenue preferred appeal before the Commissioner (Appeals) against the dropping of demand. The Commissioner (Appeals) vide the impugned order set aside the Order-in-Original and confirmed the show cause notice and allowed the departmental appeal. Hence the present appeal. 3. Heard both sides. 4. The learned advocate for the appellant reiterates the order passed by the adjudicating authority. He submits that the original authority has rightly dropped the proceedings. The file containing salary slips as relied upon by the department relates to only payment/wages paid to the labourers on weekly basis. It contained the details of names of labourers, numbe....
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....; 7) M.H. Textiles Ltd. & Ors. Vs CCE Faridabad 2014-TIOL-667-CESTAT-Del. 8) CPG Textiles Vs CCE Coimbatore 2014-TIOL-521-CESTAT-MAD. 5. Ld. A.R reiterated the findings in the Commissioner (Appeals) order. He submits that Shri R.P. Lakshmana Perumal, M.D. was fully aware of the day-to-day production and clearance and he admitted the facts in his statement dt. 5.9.2001 and he signed the salary sheets contained in the salary file. Recording of statement of Shri A.Rajendran, Excise Clerk who maintained the salary file, is not required as the statement of the Managing Director is sufficient. He also submits that retraction statement of Shri Lakshmana Perumal was made only at the time of filing of reply to the show cause notice after a long gap. He submits that the wages are normally paid to the labourers only at the final stage of production and not at lap stage. He relied on the following citations :- 1) Ramachandra Rexinis Pvt. Ltd. Vs CCE Bangalore 2013 (295) ELT 116 (Tri.Bang.) &n....
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....akshmana Perumal, Managing Director of M/s.G.P.S and Shri Rajendran, Central Excise Clerk of M/s. G.P.S. were present. The daily Production Register was checked by the officers and they found out that 10's Cotton Cheese Yarn, 10's Plain Reel hank yarn, 20's Plain Reel Hank Yarn, and 40's Plain Reel Hank yarn, were being manufactured by M/s.G.P.S . On physical verification the Officers foudn out that there was a stock of 1175 kgs of 10's Cottn Cheese Yarn and no other kind of Yarn were in stock. The physical stock of 10's Cotton Cheese Yarn was found to be tallied with the Daily Production Register and also there was no stock in the Daily Production Register in respect of 10's Plain Reel Hank Yarn, 20's Plain Reel hank yarn and 40's Plain Reel Hank yarn. There was no difference between the physical stock of Cotton yarn and the stock written in the Daily Production Register. At the time of theofficer's visit, all the departments in the mill viz. Blow room, Carding, Drawing and Spining machines were functioning." From the above, it is seen that the officers had carried out complete physical stock taking of finished goods, and also verified the ....
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....e 2 sheets for the same week showing two different quantities. For instance, at Sl.No.15 & 16, the period shown as 26.5.01 to 1.6.01 but the quantity for Sl.No.15 is 1536.512 kgs. and for Sl.o.16 is 6012.200 kgs. As seen from the salary sheet in respect of Sl.No.15 which shows list of 16 workers and wages of Rs. 4615/- and Sl.No.16 salary sheet contains list of 23 workers and total wages for the said work is Rs. 5874/- . The salary sheet shown at Sl.No.16 contains total wages of workers shown in both the sheets as under : O.E. Rs. 5874.00 Spg. Rs. 4615.00 Total Rs. 10489.00 It is relevant to see that the wage paid to workers at spinning shop is Rs. 4615/- and for O.E. i.e. lap stage production is Rs. 5874/-. Therefore, there is merit in the appellant's contention that the production details shown for payment of wages is not entirely for manufacture of cotton 10s but is for lap stage production. Department relying on the figures shown in the salary sheet without any corroborative evidence appears to be not justified. 10. It is pertinent to state that in the case of any clandestine removal of excisable goods, it is mandatory on the part of the investigating officers to ....