9911796707
TMI Blog1994 (7) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... osing a penalty of Rs. 40,000/- the case of the Department is based on the clearance of 9250 gross crown corks from the store section to the plant section as indicated in the cardex reports but not entered/accounted for in the raw material register/Central Excise records maintained by the appellants. 2. The brief facts of the case are that the appellants are manufacturers of aerated waters with Plants situated in different places, having a common General Store situated at 30, Industrial Area, Shivaji Marg, New Delhi. This Store supplies raw materials including crown corks to all the Plants of the appellants situated throughout India against requisition slips issued by the Plants and the accountal of the raw materials including crown corks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cies i.e. discrepancies in respect of the balance quantity of crown corks and also contending that there is absolutely no other evidence in the shape of procurement of other raw materials required for manufacture of the final products, so as to substantiate the charge of manufacture and clandestine removal of such a large quantity of aerated waters. The adjudicating authority rejected the contentions of the appellants. holding that the appellants have not properly accounted for the crown corks received in their Production Department which would go to show that they were used in the manufacture of aerated waters, cleared clandestinely and accordingly confirmed the duty demand and imposed a penalty of Rs. 40,000/-. Hence this appeal. 3. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. 450 gross of Campa-orange crown corks were received by us on 2-12-1985 vide Store Issue Note No. 14306 dated 2-12-1985 and entered in our Form IV register. However, the above mentioned crown corks were wrongly entered by the Store in their Cardex as 200 gross crown corks of Soda Special, 150 gross crown corks of Tripp and 100 gross crown corks of (Cola-lite) by sheer negligence on the part of the clerk. Actually the store had issued 450 gross crown corks of Campa Orange and we had produced the final product accordingly i.e. of Campa-Orange which fact can be verified from RG-1 register. 3. On 24-10-1985 we received 2,ooo gross crown corks of Campa-Cola, 1000 gross crown corks of Campa-Orange and 500 gross crown corks of Campa Lemon, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly store issued 1500 gross of Campa-cola crown corks, 750 gross of Campa-Orange crown corks and 750 gross of Tripp crown corks. We had produced the final product accordingly and this fact can be verified from our RG-1 register." However, the explanation cannot be accepted in the absence of the entire records produced by the appellants either before the adjudicating authority or before us indicating movement of defective crown corks from the Production Section to Store Section and vice versa. Further, the Form IV register for receipt of raw material has not been produced before us to substantiate the defence as contained in the letter dated 7-10-1986. Regarding 8050 gross Campa Lemon crown corks alleged to have been issued to the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a principal raw material in the manufacture of aerated waters and the appellants have not been able to discharge the burden of proof in respect of the quantity of crown corks in question. We also find that the appellants have not intimated the Department regarding defective crown corks said to be available in the General Store after issue of the same to the Production Section and it is only after physical verification that the Department pointed out that 9250 gross crown corks were issued by the Store Section. Since the crown corks are the principal raw material in the manufacture of aerated waters and in fact determine the exact quantity of production, we agree with the finding of the Additional Collector that the crown corks have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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