TaxTMI 
TaxTMI 
2014 (12) TMI 1176
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....ce dated 24-11-1999 issued to M/s. Dicco Conductors under which 4272Kg. of aluminium wire rods had been cleared, but till 25-11-1999 the modvat credit involved on this quantity of wire rods had not been debited. The Modvat credit involved on this quantity of the aluminium wire rod was Rs. 61,034/-. Subsequently, the quantity of the wire rods totally valued at Rs. 3,81,462/- cleared to M/s. Dicco Conductors were also seized for having been cleared without reversing the cenvat credit. In the course of search of factory premises, certain weighment slips were also recovered from some employees. These weighment slips were in respect of total quantity of 22.015 MT of aluminium scrap involving central excise duty of Rs. 2,11,344/- and 29.265 M.T. aluminium wire rod involving modvat credit of Rs. 4,01,223/- which appeared to have been cleared without payment of duty/reversal of modvat credit. Since the departmental officers found certain incidents of clearances of modvat credit availed aluminium wire rods as such without reversal of the credit, they enquired into the actual consumption of the aluminium wire rods by the appellant during 1995-96,1996-97, 1997-98, 1998-99 and period till 24-1....
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....sed Signatory of the appellant company. Against this order of the Commissioner, these appeals have been filed. 2. Heard both the sides. 3. Shri Rupesh Kumar, Advocate, the ld. Counsel for the appellant, pleaded that he does not contest the order of confiscation of 4472 Kg. aluminium wire rod valued at Rs. 3,81,462 cleared to M/s. Dicco Conductors without reversal of the modvat credit, that he also does not contest the central excise duty demand of Rs. 2,11,344/- in respect of clandestine removal of 22.015 M.Ts. of scrap and Rs. 4,01,223/- in respect of clandestine removal of 29.265 M.Ts. of aluminium wire rod as the same have already been paid by the appellant that he is contesting only the modvat credit demand of Rs. 91,57,546/- on 782.436 M.Ts. of aluminium wire rods alleged to have been cleared clandestinely without reversal of the credit during the period from 1-4-1994 to 24-11-1999, that there is absolutely no tangible evidence produced by the department in support of this huge demand of modvat credit, that the modvat credit demand and the allegation of clandestine removal of modvat credit availed aluminium wire rod is based on weight per K.M. of the stranded alumi....
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....ove submissions, the impugned order confirming the modvat credit demand of Rs. 91,57,546/- and imposing penalty of equal amount on the appellant company and imposing penalty of Rs. 20.00 Lakhs on Shri Alok Sharma, the Managing Director, is not sustainable. 4. Shri Yashpal Sharma, ld. DR, defended the impugned order by reiterating findings of the Commissioner and pleaded the fact that on 24-11-1999, 4472 KG of aluminium wire rods had been cleared to M/s. Dicco Conductors without reversal of the credit shows that the appellant were regularly clearing modvat credit availed aluminium wire rods without reversal of the credit/payment of duty, that though the clearance of 4472 KG aluminium wire rod 24-11-91 to M/s. M/s. Dicco Conductors was under an invoice, this invoice No. 146 had not been issued from the invoice book which was being used but had been issued from another invoice book, that similarly, the clearance of 29.265 M.T. aluminium wire rods involving modvat credit of Rs. 4,01,223/- which is evident from the weighment slips recovered from an employee of the appellant factory, also supports the allegation that the appellant were engaged in clandestine removal of modvat credi....
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....e which is 100% correct. Table 1 of the ISI standard gives the nominal diameter, the minimum diameter and the maximum diameter and mass in terms of Kg. per KM of the aluminium alloy wires used in the manufacture of stranded aluminium alloy conductors. The diameter of aluminium alloy wire as per para 7.1.2 of the ISI standard can be 1% more or 1% less than the nominal diameter. Therefore, the weight per KM of the aluminium alloy stranded conductors given in table 2 for the stranded wires of different cross sectinal area and specifications is only approximate weight and the weight of stranded conductors can be 1% more or 1% less than the weight mentioned in this table. In our view, therefore, the approximate mass in terms of Kg per KM given in table 2 of the ISI specification cannot be treated as absolutely correct figure and applied in every case. It is also seen that even as per the department's calculations ; only during 1995-96 the actual consumption of the wire rod - 1395.828 MTs. was more than maximum consumption of 1370.583 MTs. But in the subsequent years 1996-97, 1997-98, 1998-99 and 1999-2000 the consumption of the aluminium wire rod as per the appellant's record was much l....