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TMI Blog1999 (9) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... nal excise officers seized certain private books and registers. One of the book bearing the name Mahabharat and one register bearing Sr. No. 8 were found to be relevant to the enquiries. These two books were subjected to examination. The entries in the book Mahabharat were compared with the details of production shown in the lot register. These lots were found to be sent by 15 merchant manufacturers. The statements of these traders were recorded. These traders claimed that whatever grey fabrics had been sent by them had been returned back duly processed and that they did not know anything about the entries in the book Mahabharat. The officers, on examination were of the prima facie opinion that the private book reflected grey fabrics rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 93. In this order, he held that the entry contained in Mahabharat note book did not relate to finished fabrics since the word finished did not occur anywhere in the said book. He cited case law to the effect that the department was required to place positive evidence and corroboration to prove clandestine removal and that such removal could not be proved on the basis of assumption and presumption. He also observed that the stock taking done from time to time did not support the presumption arising from this book. For the lack of evidence, he dropped the demand amounting to Rs. 14,82,674.76. He then dealt with the register No. 8. He observed that the word finished occurred in the register. He mentioned that finish/zero zero process was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The fact that the register was seized from the unit was not disputed. The fact that the entries in the register related to process of manmade fabrics was also not disputed. The main reason that led the ld. Collector to drop the demand was that finished did not occur anywhere in that register. His main reason for holding that the entries in register No. 8 related to production of excisable goods is that the word finished occurred. 6. In paragraph 30.2 of his order, he had enumerated the process involved in the MMF industry. He described the process at Sr. No. 8 as follows : Finishing/zero zero process . 7. In the judgment of the CEGAT in the case of Omkar Textile Mills [1993 (63) E.L.T. 580 (T)], it has come out that a zero zer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to question the workers to understand as to what the register contained. The statement then would have become cogent evidence. Instead, the officers chose to make presumptions and assumptions which the ld. Collector viewed with favour in dealing with the Mahabharat register, but adopted when the turn of Register No. 8 came. 10. I also find that, where there was a difference between the entries in the RG. 1 register and the register No. 8, the Collector has adopted double standard. Where the private register showed higher production, only that production has been taken into account without giving due credit for the entries where the RG.I balance was more. Shri Saxena maintained that if the balance is truly struck then the end figure would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amining the issue as to the rate of duty attracted under the same enactment by the goods which were admittedly manufactured earlier but were cleared subsequent to a notification altering the rate of duty. The rules which came up for detailed examination were Rule 9 and Rule 9A of the Central Excise and Salt Act. The High Court did not go into the area of the sustainability of the orders of confiscation and of penalty under that Act. This situation was covered by the Tribunal in this judgement on a reference application made by the Collector [Collector of Central Excise, Surat v. Shree Parmesh Silk Mills - 1996 (87) E.L.T. 562]. The Tribunal held that the decision of the Gujarat High Court related only to mode and manner prescribed in additi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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