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TMI Blog2000 (11) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... ture commences with billets and rods which it receives. The goods are sometimes subjected to heat treatment for tampering. They are thereafter cut to the required size; cut pieces heated to high temperature and forged by dies. The rough forging is trimmed and holes made in it. Subsequently it is heat treated and then subjected to shot blasting to remove scale deposited during the heat treatment. The final operation is grinding, to remove projection or burns as a result of forging to give the product a smooth finish. During all these processes, there is loss of material that is worked upon. Such loss may be visible as in the case of shaving, trimming etc. Some of the loss however is invisible as in the case of fine dust or micro particle tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crap accordingly. He has also imposed penalty. 2. One of the points which was urged by the appellant before us in hearing was that during the pendency of the proceedings before the Commissioner, the cost auditor had been appointed under Section 14A of the Act to statute and report the loss in the appellant's factory and that despite being asked, the Commissioner did not make available its report. We had thereafter asked the departmental representative to procure and submit this report. This has been done and we have considered it. 3. This report by Amir Apte, cost auditor indicates the average burning loss of 12 samples produced of 5.48% of the cut weight of the raw material received. This report of the cost auditor indicates on the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction was of speed gear 207 it would be high as 10.40%. 5. The Commissioner has in his order arrived at 5.5% as invisible loss on the basis of enquiry in the trade and the experiment conducted in the factory . So far his experiment in the factory is concerned, it is wrong, for the reason that we have cited above. The contention of the appellant was no trade enquiries have been cited, cannot be rebutted by the departmental representative. In view of these factors, it appears to us appropriate and it was agreed by both sides, entire question should be gone into once again in the light of the report of the cost auditors. We however note the point made by the advocate for the appellant that he reserves the right to question the report of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sustained by sufficient evidence. 8. The remaining question is assessment of rejected ball bearing ring. Appellant initially sent this to SKF Ltd. and returned as not meeting its specifications. It thereafter was sold to three buyers at a price around Rs. 6 per kg. The Commissioner has ordered the value to be enhanced Rs. 11 to 12 per kg. We are not able to accept the contention of the appellant that since good scraps were not sold as finished product, the appellant did not necessarily then sell at commercially viable prices. This simplistic argument goes on the basis that the bearing parts having been rejected by one manufacturer would become scrap. It is not in dispute that a significant portion of these bearings rejected by one manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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