9911796707
TMI Blog1999 (8) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... cts manufactured by it between 1992-93 and 22nd April, 1996. The second is that it cleared such products at a lower value by declaring them to be scrap. He has ordered enforcement of bond for provision release of seized goods as being in excess of the production recorded in RG 1 register. He has imposed penalty on the appellant, ordered confiscation of plant and machinery, and has imposed penalties on C.S. Ajmera, its Chairman and Managing Director and on Ashwin Shah, its Vice-President and B.G. Adhikari, General Manager, N.B. Pingley, Manager under Rule 209A. 2. We shall deal with each of the allegations separately. The duty has been demanded on a quantity of 1075.822 MTs of steel sheets, which the Commissioner finds, has been remove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was tallied with the book balance. The officers then took physical stock of fully finished and duly packed final production of the goods manufactured as shown in the annexure 'B' to this panchnama. As per the stock it was found that stock as mentioned in annexure 'B' valued at Rs. 1,67,87,469.99 was found in excess than the stock shown in the RG 1. The officers then asked Shri B.G. Adhikari to give explanation about the excess unaccounted stock of final product which Shri B.G. Adhikari could not give any satisfactory explanation. The officers then seized finished stock." Annexure 'B' to the panchnama, which shows physical stock of fully manufactured goods in packed condition lying in factory premises taken as on 22-4-1996 morning shows e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s evading duty to the extend of Rs. 36.89 lakhs approximately. The Commissioner finds that the scrap generated as reflected in the RG 1 register also reflected in the RT 12 returns, is greater than the scrap shown as produced in the daily production report of the appellant; as on 31-3-1996 and 24-4-1996. He concludes, therefore, that the appellant is disposing part of production of finished goods. N.B. Pinglay, Manager of the appellant company, was questioned about this. He said that scrap was generated on two stages; the scrap in the course of the production of the goods, which is reported by the quality assurance department is entered in the RG 1 register on the basis of that report. Subsequently where finished goods are on inspection fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ap generation report. He has said that "in our process the quality assurance department after inspecting the material, the reject and scrap is reported to our production and planning department which prepares the scrap generation report and the same scrap generation report is accounted in RG 1 register. The Commissioner's view, the fact that payment is made for scrap by Bhullar Scrap Merchant in cash, which shows that such payments were over and above the scrap billed price is obviously nothing more than a arbitrary conclusion and supported by any evidence or reasoning. The conclusion that the prime material was cleared as scrap and therefore at the value applicable to scrap is not supported by law or cannot be reasoned. 7. The third ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re a different treatment than a failure which is attributable to negligence or a failure to enter the goods with the intention of clearing them without payment of duty. It was the appellant's contention before the Commissioner that it entered the goods in the RG 1 register just before they were to be cleared. It was contended that this was the trade practice. It was further contended that such a practice was in existence for long and that the department was aware of such a practice by the appellant. 9. If it is true that there was a regular and continuing practice by the appellant and others in the industry to enter the details of goods in the RG 1 register only when they were to be removed, gravity of the offence, and the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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