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TMI Blog1994 (10) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants on 31-7-1982 and imposing a penalty of Rs. 2,000/-. Delay in filing the cross objection is condoned. 2. The brief facts of the case are that on 31-7-1982, the Assistant Collector of Central Excise, Mirzapur alongwith Preventive officers, paid a surprise visit to M/s. Mohd. Sattar Co., the appellants herein had examined the records and physically checked and verified stock of Branded and unbranded Biris. On verification of the stock, it was found that there were 80,000 Branded biris in two jhals and 3,18,000 unbranded loose Biris in stock, whereas the book balance was 12,00,000 (Opening balance) Branded Biris and 2,24,77,100 (Opening balance) unbranded Biris as per RG-12A register. Out of 12,00,000 Branded biris, the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e charges against the appellants. Hence this appeal. 2. We have heard Shri A.N. Sharma, learned Consultant and Shri R.K. Kapoor, learned DR and carefully considered their submissions. We observe that the appellants herein is a Proprietary concern of which Smt. Shakooran Bibi (the aunt of the present appellant Sh. Mushtaq Ahmed) After the death of her husband, one Shri Mohammad Gaffar was managing the affairs of the factory. Smt. Shakooran Bibi died on 4-3-1982 and according to Wasiatnama (will) dated 2-9-1963 of Sh. Modh. Sattar, Sh. Mushtaq Ahmed automatically became the sole proprietor of the firm with effect from that date. Sh. Mushtaq Ahmed wrote a letter to the Department on 7-3-1982, the free English translation of which reads as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation has been preferred till date regarding this shortage. 4. We have gone through the statement dated 5-8-1992 of Sh. Abdul Ghaffar to the effect that after the death of Smt. Shakooran Bibi on 4-3-1982, Shri Mushtaq Ahmed became the owner of the firm and before leaving the firm, Shri Abdul Ghaffar handed over its business account of credit and debit to Shri Mushtaq Ahmad and that on the date of his handing over charge, there was a stock balance of 1,81,03,625 loose biris, 2 lakhs branded biris packed in jhals. Shri Abdul Ghaffar has also stated that during his tenure as power of attorney, the Excise work was being looked after by Shri Mohd. Haseen and Rajjan Khan (who is the Signatory to both the stock taking reports). In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ----------- 2,09,40,600 2,09,40,600 31-5-1982 4,00,000 2,01,36,250 2,05,36,250 30-6-1982 ------------ 2,15,40,700 2,15,40,700 31-7-1982 4,00,000 2,26,49,450 2,30,49,450 From the above chart, it appears that more than one crores of biris have been stored in the factory in the past year. Hence the argument regarding capacity of the BSR in packing and labelling falls to the ground. The contention of the learned Consultant that biris being a perishable item, such a huge stock of 2 crores of biris could not be maintained over such a longer period as their shelf life is only 6 months, is not acceptable as it is quite possible, as revealed in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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