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TMI Blog1993 (10) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... as paid only on this quantity. But when physical verification was carried out, they found 1225-80 LM, thereby showing an excess quantity of 300 LM being cleared without the cover of the gate passes. Hence these fabrics were seized. On check of the quantities of processed fabrics lying in the bonded store room, the officers noticed 222.30 LM pieces of processed fabrics duly packed kept therein, whereas the excise records showed `nil balance. Hence the aforesaid fabrics being not accounted for, were also placed under seizure. Thereafter, the statements of Shri K.G. Shah, Authorised Signatory of the appellants firm was recorded. Shri K.G. Shah in his statement admitted that his brother Anant Giridharlal Shah and cousin Shri Dilip Amratlal are the partners, and he is the authorised signatory and he is looking after the production and clearance of processed fabrics from the appellants factory. He is also a partner of Indian Velvet Factory. The sales in the shop of M/s. Indian Velvet Factory are looked after by his brother Shri Anant Giridharlal Shah. He admitted to have signed the blank gate pass and has not checked up the correctness of the total quantity of fabrics indicated in the G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v) the vehicle tempo used for transporting 1225.80 LMs of fabrics belonging to Indian Velvet Factory being liable to confiscation because of its usage in transport of the said fabrics. 2.3 In the adjudication proceedings held by the Collector he ordered confiscation of 1225.80 LMs 222.30 LMs of processed fabrics but allowed redemption on payment of fine of Rs. 3,000/- and Rs. 500/- respectively. He held the liability to confiscation of the tempo but ordered appropriation of a sum of Rs. 2,500/- towards the redemption fine in terms of the bond executed for provisional release of the vehicle. He also confirmed the demand for 300 LM of fabrics found in excess not covered by gate pass, seized in transit and also on a quantity of 3,39,328.08 LM (minus deductions allowed in respect of certain arithmetical errors) processed fabrics alleged to have been cleared in excess of the quantities covered by gate pass. A penalty of Rs. 1 lakh was also imposed on the appellants. 3. The present appeal is against the abovesaid order. 4. Shri Shroff, the ld. advocate mainly pleaded on the following grounds : 4.1 The alleged modus operandi of removing excess quantities of fabrics under gate pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mechanically conformed the demand. In this context, he refers to their detailed reply to the show cause notice and the various statements reconciliating the discrepancies leaving only a balance of about 9000 LM, which is attributed on account of cutting and sale in retail. 5. Heard Shri Singh. He refers to the findings of the Collector on the submission made in reply to the SCN to point out that the records have been manipulated and hence reconciliation figures attempted are not accepted. He however, does not have objection, if the matter is remanded with such directions as may be called for. 6. After hearing both the sides, we find that on the main question relating to the demand for duty on the past clearances, we are seriously handicapped; because both the sides have not produced before us the copies of the various ledgers and copies of invoices etc. Hence we are left with no other alternative but to remand the case, with directions as may be called for, as per our analysis of the Collector s findings in the context of the available records before us. We discuss this aspect elsewhere in this order. 7. First we take up the short questions, which could be finally decided by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Velvet Factory are not taken into account. (ii) quantity of processed fabrics rejected by customers which were subsequently sold. This quantity has been taken twice by the department. (iii) Goods sold in grey condition have been wrongly taken by the department as processed goods. (iv) Quantity of processed fabrics purchased from outside parties by M/s. Indian Velvet Factory. (v) Arithmetical errors in department s calculation. (vi) M/s. Indian Velvet Factory had cleared processed fabrics for export under bond from time to time from M/s. Shital Dyeing. But about 10,000 LMts. have been diverted by them for home consumption after payment of duty under T.R. 6 challans. (vii) M/s. Indian Velvet Factory have also got fabrics processed from M/s. Darshana Velvet Dyeing and Printing Works. 10.1. The Collector in his findings admits that as regards goods returned by customers and goods purchased from outside (statements 2, 5, 7, 9, 12, 14, 15, 16, 21, 23, 24, 25 annexure to the reply to S.C.N.) the relevant records - case books for rejected goods and purchase registers and ledgers show the names of parties and quantity as mentioned in the statements. But the width in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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