2004 (3) TMI 292

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.... when the Central Excise officers visited Appellants' factory premises on 27-10-98, they seized 20 bales of acrylic staple fibres found in the factory and observed a shortage of 146519.5 kgs. of acrylic staple fibre; that the Commissioner has disallowed the Modvat Credit in respect of quantity of acrylic fibre found short on the basis that such material was never received in the factory; that this is not correct; that since there was no sufficient space available for storage of the material in the factory, the same was stored in their registered office and the raw material was brought in instalment to the factory, as and when required; that in fact subsequently the aforesaid quantity had been received in the factory and used in the manufact....

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....209A of the Central Excise Rules, 1944 as he was not involved in the day to day working of the company. 3. Countering the arguments, Shri P.M. Rao, learned DR, submitted that Shri Sat Paul, Managing Director, had deposed, in his statement, dated 27-10-98, that they had received only bills for the quantity found short from M/s. Shiwalya Trading Corporation, their sister concern, without actually bringing/receiving the material in their premises; that even the visit of their Registered Office revealed shortage of acrylic fibre there also which was explained by Shri Sat Paul as having been received less from M/s. Shiwalya Trading Corporation. He, further, mentioned that the officers had also recovered six invoices of acrylic staple fibres i....