TaxTMI 
TaxTMI 
2005 (7) TMI 13
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....s of 9387 rigid PVC pipes, (b) confirmed duty demand of Rs. 7,20,502/- on 60,300 kgs of PVC resins and 3,050 kgs calcium carbonate (inputs/raw materials) found short during search; (c) confirmed duty demand of Rs. 1,27,643.68 on illicit clearance of PVC pipes as per Annexure C to the show cause notice; (d) confirmed demand of Rs. 19,60,001.93 on illicit clearance of PVC pipes as per Annexure D to the show cause notice; (e) confiscated seized quantity of 2,094 rigid PVC pipes with option to redeem them on payment of a fine of Rs. 1,10,000/-. (f) confiscated seized quantity of 2,600 kgs of inputs with option to redeem t....
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....e of Rs. 1 lakh; (h) imposed penalty of Rs. 20 lakhs under Rule 173Q(1) of the Central Excise Rules on the manufacturer, and (i) imposed penalty of Rs. 1 lakh under Rule 209A of the Central Excise Rules on its General Manger. 4.We have heard both sides and record our findings as under. 5.Demand on finished goods found short on stock verification is sustainable in view of the admission of such shortage by Shri Nambiar. The contention of M/s. Plastotex (Bombay) Pvt. Ltd. that stock of some finished goods was stored in the adjoining compound of M/s. Omniplast (Bombay) Pvt. Ltd. and vice versa and that shortage found in one premises was off-set by excess stock found in the other premises is no....
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....nexure C to the show cause notice, we find that Shri Nambiar, General Manager, had admitted to the fact of illicit removal and had debited the duty on the very next day admitting the lapse. This demand is based on three booklets 41, 42 and 43 (internal records) together with statements of the General Manager. The Commissioner has dealt with the entries in these booklets and found that they show production of PVC pipes by the appellants during the period in dispute. Annexure C has been prepared on the basis not only of these booklets but also on the basis of production reports containing file No. 823 seized from the factory or the appellants. The booklets contain details of date-wise and shift-wise production of different sizes of PVC pipes ....
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....ged to have been produced and cleared illicitly by them and the electricity consumption was not so high as to enable production of such a quantity of PVC pipes stated to have been cleared illicitly, does not advance their case for the reason that not only has the Commissioner relied upon the admission of the General Manager regarding illicit production and clearance but also for the reason that details of date-wise and shift-wise production are contained in the booklets which have been relied upon by the Commissioner for coming to the conclusion that there was clandestine manufacture and clearance of PVC pipes. This feature distinguishes the case law relied upon by the learned counsel for the appellants. The further argument that, in any ev....