1998 (2) TMI 307

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..... gainst the order of the ld. Collector (Appeals). The ld. Collector (Appeals) had held as under :- On going through the facts of the case and hearing the appellants their consultant, I hold that they definitely have a case. It is within the knowledge of the deptt. that two separate recording is being done by the appellants of the bars manufacture by them. To come to a factually correct accountin .....

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..... he extent of 19.108 MTs. At the same time, they detected a shortage of flat bars below 3 mm and width also below 75 mm to the extent of 18.275 MTs. The Asstt. Collector after considering the pleas of the respondents demanded Central Excise duty on the goods found short and confiscated the flat bars found in excess and also imposes a personal penalty of Rs. 25,000/-. On appeal, the ld. Collector (A .....

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..... recorded become different for purpose of accounting. He therefore, submits that the ld. Collector (Appeals) order is erroneous inasmuch as the correct accountal is the responsibility of the assessee and in case the accounts are not correctly maintained then the violation of Rule 226 is proved. He therefore, prays that the impugned order may be set aside and the appeal may be allowed. 4. Shri P. .....

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..... and dividing line is 3 mm. I also note that the respondents herein were maintaining different entries in their accounts for flat bars of different width also. Thus the maintenance of the accounts on the basis of not only thickness but also of width correctly was the responsibility of the assessee. The deptt. also agitated the finding of the ld. Collector (Appeals) that the shortages found were act .....

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..... mm below is the same, I hold that the allegation of clandestine removal is not proved. The mistake of incorrect maintenance on records is admitted by the assessees inasmuch as the partner of the company admitted the fact that the shortages and excesses were there but the figures could be complementary and compensatory. Having regard to this, I hold that there was contravention of Rule 226 of the .....

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