1977 (8) TMI 161

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....eferred to as the 'Assessees') are, inter alia, the manufacturers of Art Silk Fabrics falling under Tariff Item 22 of the Central Excise Tariff. They receive semi-processed Art Silk Fabrics for processing from other Mills and their own sister concerns like Delhi Cloth Mills and Swatantra Bharat Mills. They also send their own semi-processed Art Silk Fabrics to their said sister concerns for furthe....

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....sing losses in the prescribed form 'C' which was also not maintained by them. 4. The charges framed against them, vide this office show cause notice of even number dated 11-3-1977, were that they had not accounted for in R.G. 1 record 7,24,302 and 55,770 L. Metres of semi-processed Art Silk Fabrics sent by them for processing to their sister concerns M/s. Delhi Cloth Mills and M/s. Swatant....

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....al losses and did not raise and revenue implication as the excise levy was on the fully finished Art Silk Fabrics and not on the semiprocessed fabrics, and that it was not mandatory on their part to maintain R.G. 1 Register at off-the-loom stage i.e., for the grey fabrics because only the fully and finally finished and marketable Art Silk Fabrics were to be accounted for in R.G. 1. They also reque....

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....related to the pre-finished stage and could not find any place in R.G. 1 in which only fully finished goods are entered and that the losses, if at all to be taken into account, in question being negligible may be condoned. 7. I have carefully gone through the case records, the reply to the show cause notice and the submissions made by the assessees at the time of Personal Hearing. It is ob....