2000 (1) TMI 86

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....entral Excise & Salt Act, 1944. 2.  The facts of the case briefly stated are that information was received by the Central Excise Authorities that M/s. Ramsnehi Synthetics engaged in the manufacture of HDPE Tapes falling under chapter sub-heading No. 506.90 of Central Excise Tariff Act, 1985 were evading Central Excise Duty by suppressing the production and illicitly removing the goods. They visited the factory of the assessee. During the course of checking of the records of the assessee/appellant, the officers found excess stock of 4128 kgs. of HDPE Granules used as raw materials by the assessee and shortage of 189 kgs. of finished goods (HDPE tapes) as against the recorded balance in R.G. 1 Register. Shri Bhupendra Thakkar, Manager....

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....Central Excise Duty amounting to Rs. 3,71,760.22 was not paid. It was, therefore, alleged that the appellants manufactured and cleared 91838 kgs. of HDPE tapes during the period from 1-3-1986 to 18-11-1986 without payment of duty. Accordingly, a SCN was issued to the appellants asking them to explain as to why duty should not be demanded on 91838 Kgs of HDPE tapes and why penalty should not be imposed. In reply to the SCN the appellants submitted that HDPE tapes are classifiable under Chapter Heading 39.22 prior to 28-2-1986 and thereafter under Chapter Heading 39.26; that the SCN pertains to the period prior to 1987 when the goods were fully exempt under Notification No. 132/86 and therefore, there was no duty liability in respect of the s....

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....e ld. Counsel that it is common knowledge that there is slippage of HDPE granules that in the present case the slippage was only to the extent of 1299 kgs. for the whole period of demand against the total quantity taken into consideration that this was much less than 1%. It was contended that the appellants had not received 4800 kgs. of HDPE granules that these granules were short received by the appellants. It was, therefore, prayed that in view of the above submissions the impugned order may be set aside and appeal may be allowed. 4.  Shri V.M. Udhoji, ld. DR submits that M/s. Ramsnehi Synthetics Pvt. Ltd. admitted shortage of 6150 kgs. and also shown slippage of 1299 kgs. that no evidence regarding the nature of slippage was prod....