9911796707
TMI Blog2001 (9) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... . These were as follows :- (a) For size 7.50 x 16 Period Rate of duty per tyre when removed for TT (Rs.) Rate of duty per tyre when removed as LCV (Rs.) March 1993 to 15-3-1995 280/- 870/- 16-3-1995 to 22-7-1996 300/- 945/- Similarly under the same notification, rates of duty for the tyres of sizes 6.00 x 16 were different when removed for use in Tractor Front (TF) or when removed for use as Jeep Tyres (JT) as follows :- (b) For size 6.00 x 16. Period Rate of duty per tyre when removed for TF (Rs.) Rate of duty per tyre when removed for JT. (Rs.) March 93 to Feb. 95 150/- 400/- March 95 to July 96 160/- 435/- 2. The appellants manufactured the tyres of the above two sizes and paid duty at the lower ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same were being cleared by them in the guise of TT tyres. From the statements of the Company officials, recorded during the course of investigations also revealed that maximum sale of 7.50 x 16 tyres was to LCV owners who fitted them in their vehicles. Similarly for the tyres of the size of 6.00 x 16, the records of their factory showed that they were manufacturing Commando and M & S jeep tyres but removing the same as T.F. tyres at lower rates of duty. The internal documents of the party also supported this fact. In this respect also, it is alleged in the show cause notice that the tyres named Commando and M & S were for Jeep and the party had cleared them as T.F. tyres. It is alleged that the appellants were earlier issued a show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f duty, the production quantities were shown on the lower side in their RG-1 record. Thus it is alleged that the Company has suppressed the actual production figures in RG-1 register. The duty evasion on this ground during the period from June, 1993 to September, 1996 is worked out to Rs. 4,66,21,024/-. Appellants are accordingly called upon to show cause why the Central Excise duty totally amounting to Rs. 8,21,18,194/- should not be recovered from them under Rule 9(2) of the Central Excise Rules, 1944 read with the provisions of Section 11A(1) of the Central Excise Act, 1944 and why a penalty should not be imposed on them under Section 11AC, Rules 9(2), 173G and 226. In the same notice, Shri Rajesh Dewan and Shri H.N. Dhyani, Executive Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared the tyres of both the sizes either for TT or for TF by paying lower rates of duty and if the dealers had sold them for use in the LCVs or jeeps, they cannot be blamed for it as the appellants have no control over the dealers. As regards the difference in specifications, with reference to the raw materials, compound etc. required for speed and loading pattern between the tyres of LCV and tyres of TT as given in the ITTAC Tyre Manual, 1991; BIS standard and ISI standard (these standards are given in details in the show cause notice), it is argued that the Department did not draw any samples and subject them to any physical or chemical test to establish their case. It is further contended that their factory was under physical control f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LCV tyres and they (the appellants) were also compensating the users for the defects in such tyres. On this score, therefore, the appellants have not made out a prima facie case in their favour. 6. As regards the findings on suppression of production and inflating the figures for nil and lower rate of duty tyre, these are based on the private records of the party such as shift activity sheets, daily production reports, tyres production reports, production performance reports and statements of despatch of replacements and O.E. tyres. The details of these are given in the show cause notice as well as in the order-in-original. These particulars are not controverted before us and in any case, these figures relate to the facts which can b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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