TaxTMI 
TaxTMI 
2004 (9) TMI 269
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....s. Those days (1996) SSI exemption limit was Rs. 30 lakhs. 2. M/s. Saraswati Rubber Works (SRB) Kalina belongs to Shri Gopal B. Musale, the proprietor. This firm carries out machining process on the Aluminium castings manufactured by M/s. SEW. Gopal B. Musale, who now expired, was the husband of Smt. Vithabai Musale. The Ambernath factory (M/s. SEW) was set up as there was no possibility of setting it up at 'their' Kalina factory because of the restriction placed on the industrial units. 3.The events that led to the seizure of Aluminium Castings manufactured by M/s. SEW would be narrated later on. During the course of investigation the officers found that Aluminium Castings machined at M/s. SRP, are sold from M/s. SEW's office, which ....
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.... summoned his statement was either not accorded or if recorded was not supplied to M/s. SEW. 5.The officers determined the quantity of goods produced in 94-95 and 95-96 on the basis of the entries found in the so called production register recovered from SEW's premises. For determining the value of the goods so produced the department made use of the statements made by Gopal Musale a PLA holder of M/s. SEW who ran the show at the material time as to the price at which the various parts of mixers are sold. 6.From the above narration it is clear that what are being produced at SEW as Aluminium Castings, are machined at their unit at Kalina (SRP) and are being sold as part of mixtures at certain prices in the market again by SEW. 7.On....
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....ses of M/s. SEW. 9.The Commissioner holds that M/s. SEW produced 48,367 Pcs. mixer parts in 94-95 and 95-96 valued at Rs. 71,09,181/- and 7,77,469 Pcs. Valued at Rs. 1,14,81,051/- respectively. After allowing the SSI exemption of Rs. 30 lakhs in each of the years, the Commissioner demanded Rs. 18,31,222/- being duty on the mixer parts clandestinely removed in the years 1994-95 and 1995-96. He also confirmed the penalties imposed by the original authority. 10.Heard both sides. 11.The Commissioner held that the seized castings are parts of mixer classifiable under Chapter 85 of the Schedule to CETA. Admittedly these castings have not been machined as the panchanama and the statements of various persons indicated. The Commissioner app....
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....ant inter alia on the ground that statement of the person who made those entries had not been furnished and that there were several irregular entries in the said Register. We observe that the person who maintained the production figures is not a casual worker but a supervisor. There is no reason to disbelieve the entries made therein. Further the appellant has not furnished any other account of production. The appellants themselves admitted at one point of time that the entries made in the register were correct. Their manager corroborated these averments. We are aware that the appellants retracted his statements later on. But we hold such retraction does not damage the evidentiary value of the register itself seized from the premises of the....