AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (5) TMI 1446
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....e of Polyester Chips and Polyester Films. The Polyester Chips are captively used in the manufacture of Polyester Film. The production process in the factory goes round-the-clock in three shifts. The 24-hours productions are entered in the daily stock account - RG-1, on the basis of production slips issued by the production in charge. The production slips are received by the Excise staff at around 10.00A.M. and thereafter the production of both Polyester Chips and Polyester Films are entered in the RG-1 record at around 11.00A.M. As the manufacturing is a continuous process, so the appellant maintains proper stock of Polyester Chips - intermediate product, as in absence of same, the manufacturing process would be negatively affected. The sto....
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....what stage the Box number for the plywood fitments fitted and palleted rolls of Polyester Film find?" In answer Mr. Singh said "when film passed quality test and get "A" grade and after that it is alleged in his statement, he has categorically admitted that the 176 Rolls of Polyester Film, which were seized, have passed quality test for A grade. Statement of one Mr. Y. S. Rautela, Excise Executive of the appellant was also recorded on 04/10/2001, wherein in reply to question of 15 that the daily stock account was not filled for the days 18th and 19th September, 2001 on day of checking/seizure by the Department. Further question No. 22, 23 and 27, enquiring the status of the seized 176 Rolls, Shri Rautela stated that the goods are packed on ....
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....by continuous process without proper intimation and proper permission while the chips is also excisable commodity which is easily marketable. Further, the proper authority did not properly calibrate the silos in which the chips were stored and the said fact was well in the knowledge of the appellant which was admitted by Shri Rautela in his statement. Thus it appeared that the appellant was concealing the facts regarding daily production and consumption of chips in continuous process in the plant. Accordingly, it appeared that the appellant have clandestinely removed the alleged short quantity of Polyester Chips 194.33MT of chips and accordingly, they were required to show cause as to why the duty of Rs. 13,99,190/- should not be demanded r....
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....appellant. 7. So far the Polyester Chips are concerned which are intermediate products and further used in the manufacture of Polyester Films, the chips are consumed in continuous process. At any given time the stock of chips is available in the silos. Certain quantities also remain in the process line. The stock in the silos and the quantities in the process line had not been taken into consideration by the officers, while arriving at the alleged shortages. Nothing improper was found in the records maintained with regard to Cenvatable inputs etc. Neither any Polyester Chips were found outside the factory cleared clandestinely. Further at the time of inspection Mr. Arvind Purohit Manager (stores) had explained that there are also certain s....
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....sis of which it is seen that the appellant were having a quantity of 30.707+35.3520MT in their silos on the date of inspection. Accordingly, the Additional Commissioner allowed the benefit of this quantity being 66.227MT and thereafter worked net shortage of 128.105MT against the alleged shortage of 194.332MT, and accordingly, on the net shortage so worked out. He was pleased to confirm duty of Rs. 9,22,355/-. Further redemption fine of Rs. 4,50,000/- imposed for release of the confiscated Polyester Films which had already been released on furnishing Bank guarantee Rs. 4,77,800/- which was ordered to be appropriated by enforcing the Bank guarantee. Further penalty of Rs. 9,22,355/- was imposed under Section 11 AC of the Act read with Rule 2....