2003 (9) TMI 127

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....125 Kgs were found short. The statement of Shri Amir Chand Jain, Director of the Company was recorded to the effect that out of 1,037 Kgs of Supari, 7,76,620 pouches of Gutka can be manufactured. On the basis of this statement, Central Excise duty of Rs. 1,55,342/- was demanded from the appellants. Further scrutiny of the record on 27-11-95 to 12-8-97 it was found that the appellants suppressed the production of their final product compared to the raw material i.e. Supari and on this account duty of Rs. 1,77,211/- was also demanded. The adjudicating authority confirmed the demand and imposed penalty of equal amount on the appellants and penalty of Rs. 1 lakh only on Shri Amir Chand Jain under Rule 209A. The appellants filed appeal and the s....

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....tion of the appellant is that they are receiving the Supari and thereafter they are cutting the same into small pieces. After cutting the Supari the supari was heated in an oven to make it brittle. During this process moisture is lost and thereafter, supari was passed through the minute jali to remove the supari dust. This manufacturing losses was not taken into consideration by the adjudicating authority by calculating the quantity of their final product. The contention of the appellant is also that now they are separately keeping the record on such manufacturing losses and the Revenue is accepting the same. 6. The contention of the Revenue is that the quantity of the final product was calculated as per the statement made by Shri Amir C....