TaxTMI 
TaxTMI 
2006 (11) TMI 53
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....ised yarn have used anti-static oil in the texturising process and the use of oil resulted in weight gain of about 4.5 to 5 per cent in the texturised yarn and the excess texturised yarn has been cleared without reflecting in the RG-I Register. (b) Yarn waste arising from the manufacture of POY and texturised yarn was around 0.5% of the quantity but the appellant company claimed the waste as 6% to 7% and to that extent suppressed the actual quantity of texturised yarn manufactured by the appellants. The excess quantity of texturised yarn was being cleared in the guise of waste. (c) The above discrepancies came to notice following the visit of the officers on 2-7-1996 and subsequent inves....
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....anufactured texturised yarn out of it and cleared the final product on payment of duty under Central Excise Rules. (b) During October '94 to January '96 there was a heavy waste due to fire accident which occurred in the appellants factory on 28-9-1994 and outbreak of plague in Surat city. The wastes were reported in the RT-12 returns during the relevant period. (c) On the date of search the physical stock tallied with stock on record. (d) M/s. Classic Industries have carried out job work for the period October '94 to March '95, February '96 to July '96 for M/s. Classic Filaments. (e) The noticees have substantially met with the allegations ....
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.... Yadav have not been agreed to by the director in his statements. He explained the excess wastage as due to fire accident which took place on 28-9-1994. They have also explained the mismatch between dates on the excise invoices and the delivery challans as due to clearance as a trader from the duty paid godowns. 7.Commissioner has carefully analysed the various evidences and come to the conclusion that the allegations have not been established. Extracts of his findings are as follows. "The investigating officers prepared annexures A, B and C showing the details of illicit clearance of crimped/textured yarn of both the units. These statements were prepared on the basis of delivery challans and other records seized from the units. Howev....
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....of fire and calling for fire brigade, press report, reporting of fire to Police Authorities which gave rise to waste which was reflected in RT-12 for October, 1994 run contrary to support the case as made out in the SCN. The RT-12 for October, 1994 was duly assessed and waste shown therein was subsequently cleared on payment of duty leviable thereon. Accordingly, the notices having explained their case satisfactorily and in the absence of corroborative evidence, the offence cannot be taken as proved." "It may be pointed out that delivery challans are under seizure, the verification of which shows that signs of 'CFL' and 'CIL' are figuring therein. It may be pointed out that the investigations were conducted by the department with the cus....