9911796707
TMI Blog2000 (7) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... clocks complete in packed condition were in excess than the recorded quantity of this item in their RG 1 Register. Further 4390 pieces valued at Rs. 2,23,890/- of wall clocks cabinets were found short. This stock taking was conducted in the presence of Shri Mahinder Bathla, Partner of the unit. The excess quantity of wall clocks was seized. The Central Excise Officers again visited the unit on 2-1-1992. They verified the stock of quartz clock movements - one of the inputs in the manufacture of clocks. On verification, 18,903 pieces involving Central Excise Duty of Rs. 36,002.98ps. were found short. 2. The proceedings were initiated against the appellants and they were issued a show cause notice on 26-6-1992 by the Assistant Collector of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants and Shri T.A. Arunachalam, JDR for the Respondents. It is submitted that 4905 pieces of wall clock found in excess were manufactured during the week prior to the date of the visit of the Central Excise Officers. They were in fact tested and packed on that day only and as such they were yet to be entered in the RG 1 Register. It is also stated that the production of the day was not taken into consideration while determining the excess quantity unaccounted for. With regard to the shortage of 4390 pieces of wall clock cabinets it is stated that the shortage was not real as the cabinets in question were used by them in the clocks which were found in excess. As regards the shortage of 18903 pieces of the clock movements, it is submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also admitted by Shri Bathla in his statement of the even date. Shri Bathla also stated that the goods could not be entered in the RG 1 account since their excise clerk was on leave for the preceding week. Therefore, the contention that the goods were tested and packed on that day only and on that ground they had not reached RG 1 stage, is only an after thought, it is observed. The submission about shortage of 4390 pieces of wall clock cabinets is that these cabinets were used in the wall clocks numbering 4950 pieces found in excess. This plea of the party has been dismissed by the lower authority by observing - if these cabinets had been utilised captively in the manufacture of wall clocks, the same should have necessarily been account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchased/imported in a fully manufactured condition and they are simply fitted in the clocks cabinets, therefore the question of waste thereof during the course of manufacture of wall clocks does not arise. They have also neither maintained any account for such waste nor that of the disposal of the same. In such a situation, the explanation of the party is not convincing, I do not find any discrepancy in these findings of the lower authority and the same are accordingly confirmed. 10. In view of the above analysis the demand amounting to Rs. 12,314.00 in respect of 4390 pieces of wall clock cabinets confirmed on the appellants is set aside. The penalty of Rs. 25,000/- imposed on them is reduced to Rs. 15,000/-. But for this modification th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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