9911796707
TMI Blog1990 (1) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded balance of 50,980.260 sq.ft. of Aluminium sheets in RG-23A Part I register. The appellants are manufacturers of name plates out of the Aluminium sheets obtained by them and in respect of which they claimed MODVAT credit. The officers also found in the factory premises of the appellants in the first floor room, which was stated to be rented out to M/s. Decal Prints (India) Pvt. Ltd., by the appellants, which had also the name board of M/s. Decal Prints (India) Pvt. Ltd. Name plates valued at Rs. 14,460.50 which were not accounted for in any record in the appellants unit were seized by the authorities. A statement was recorded from the Managing Director of the appellants firm and he has stated that the appellants had been manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Bank account. This stock as reported by them to the Bank was reflected in the statement prepared by them and they made the debits for that purpose as and when the finished goods were removed and that the method of accounting for the sheets issued was by the slips which after the job had been done were returned and the Accountant concerned used to deduct the stock in the stock register after the materials were sold to the customers and that the stock register and bank statement reflected not only the value of raw materials but also the semi-finished and finished goods value and by mistake when they started operating under the MOD-VAT Scheme they took the existing balance in the stock register of 47,855.43 Sq.ft. which comprised of stock s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d given an explanation as to how the shortage took place when the Managing Director gave a statement, but the same explanation was not pressed to its logical conclusion with evidence as unfortunately the appellant could not give any evidence in support of that. He pleaded that after the visit of the officers the appellants had got an in-house investigation done and that the shortage in fact was only 9,470.76 sq.ft. according to their investigation and the Board of Directors of the company has accepted this position. In regard to the name plates seized from the office of M/s. Decal Print (India) Pvt. Ltd. located in the appellants factory, he pleaded that no doubt the firms belonged to the same family but no investigation has been caused to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. But the only question that falls for consideration is whether the appellants have been able to explain this shortage. It is observed that at the very initial stage the appellants took the plea that shortage was on account of transcription of the stock from the Bank statement which do not reflect the correct position when the appellants started operating under the MODVAT Scheme and that the defective and other sheets and cuts which were lying in the factory as left overs from the manufacturing operations during the last 7-8 years accounted for the shortage. The appellants produced no evidence in support of this plea as to how such a large shortage had come about and has remained uncorrected in the stock register. In the absence of any evi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l that this aspect should be gone into. The learned Collector can also get an experiment done for the manufacture of the name plates in respect of the orders in hand of the appellants and work out the percentage of the wastage that can arise and allowance for the same can be given. So far as the name plates which have been seized from the office of M/s. Decal Print (India) Pvt. Ltd., it is observed that enquiry should have been made with M/s. Decal Print (India) Pvt. Ltd. to ascertain whether the plates had been manufactured by them and, if so, why the same had been brought in their office located in the appellants factory. The appellants have disowned the ownership of the same and no evidence has been adduced that the plates in fact belon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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