9911796707
TMI Blog2000 (1) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... le appeals. 2. Briefly the facts are : (i) On search of the premises of the appellants on 10-8-87 and on verification of the RG 12A register and EB-3 register it was found that they had been written upto 9-8-87. The gate pass issued was S. No. 32, dated 4-8-87. As per the RG 12A register of the company, the opening stock of labelled beedies as on 10-8-87 was 92,000 and the stock of unlabelled beedies 2,06,525 numbers. But on actual verification, the physical stock of labelled beedi was found as 97,000 numbers and that of the unlabelled beedi was found as 1,51,900 numbers. Stock of beedi tobacco kept in the said beedi company was found as 1,800 Kgs on weighment. But as per the EB-3 register, the closing stock of Tobacco as on 9-8-87 was 1,862.50 Kgs. Certain accounting books and incriminating documents were seized under a mahazar on 10-8-87. The beedi godown of the factory was also searched in the presence of the owner of the Company. As a result of the search seven gunny bags containing labelled were recovered. Out of these gunny bags, 3 bags bore AR Nos. 214/87-88, dated 4-8-87, AR No. 190/87-88, dated 21-7-87, AR No. 214/87-88, dated 4-8-87. No markings or documents were seen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly besides the work in the beedi drying section. etc. (v) Shri Mohammed working as checker on beedies also gave incriminating statement corroborating the facts given by the above persons. (vi) The appellant C. Aboo Backer Haji also gave his statement on 13-1-88 admitting that in his absence the affairs of the company were looked after by his son named above. He admitted about the seizure of 2 lakhs beedies from the godown as per the mahazar and about non accountal and confirmed the facts admitted by the above persons. He also admitted about the number of workers and also that on an average one worker would roll 1000 beedies per day and 5500 beedies could be rolled using 1 kg of tobacco. He also stated that tobacco required for the company was purchased from M/s. Kunhu and V. Mustafa, Balipatnam and that two contractors used to bring beedies to the company and that they were CP Karunan, Mavilayil, Cannanore and PV Ambu, Neeleswaram. Statements were recorded from these persons who admitted of the facts given by the above persons. (vi) On the basis of the search, recording of statements and scrutiny of the documents the appellant was charged with contravention of various rules o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant also not contested this aspect of the matter. 4. The Collector also examined the issue of recovery of packets of labelled beedies in the godown. Out of the seven bags, only three bags were bearing the AR numbers. The officers could not find out any records or markings on the remaining four bags of beedies evidencing payment of duty and therefore, upheld the seizure of the four bags of 50,000/- labelled beedies from each. He also found that there was no defence at all and hence there was no defence produced by the appellant to prove that the duty had been paid on this 2 lakh beedies. Therefore, he upheld the confiscation and held that duty was liable to be paid on this seizure. 5. The learned Counsel did not seriously contest this point in view of goods having been removed without payment of duty. 6. The Collector has also noted the statement given by Abdul Rahiman on 10-8-87 and about his statement that he had removed one lakh beedies for sale without any covering document and payment of any duty on the same and also pointed out that there was no bill for sale of beedies in retail. This statement had been corroborated by Aboo Backer Aabraham, Accountant, Jayan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of 1 Kg of tobacco. He also submitted that the appellant had also filed affidavits which have not been taken into consideration and therefore, there is clear violations of the principles of natural justice. He also pointed out that there are discrepancy in the mahazar and the statement given by the employees and the son of the appellant were resiled and hence there is no corroborative nature of the statements and hence on the basis of mere statements, duty cannot be confirmed. He also submitted that there was no failure on the part of the appellant to maintain records and removal of goods to the godown without payment of duty was only a mistake due to certain outside workers and part-time workers who had been engaged and there was no intention to evade payment of duty. Therefore, the duty confirmation is totally unjustified including the penalty. 9. Smt. Janaki Arun Kumar, learned SDR took us through the record and pointed out that there was no violation of the principles of natural justice. She submitted that the Collector has brought out clear corroborative evidence with regard to manufacture and clandestine removal of the goods which was with the knowledge of the appellant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e quantum of beedies manufactured and cleared and purchased by them for sales without payment of duty. There is a clear chain of evidence of clearances without payment of duty and each of these chain has been proved by substantive evidence. The learned Counsel argued that the affidavits have not been gone into in detail. The Collector has noted that there was nothing which was brought out in the affidavits about the nature of retractions made. He has noted that the original statements have not lost their evidentiary value and since the affidavits were filed after a considerable lapse of time, there was no clear cut retraction. We notice from the appellant s record that he has not produced any records except the grounds made in the memo of appeal. Appellant has not produced, copy of show cause notice, statements, copies of the seized records, affidavits said to have been filed in regard to calculation of duty which has been challenged. Therefore, it clearly indicates that the appellant has kept the matter pending for more than a decade without seriousness to contest the case though several opportunities have been given to the appellant for several years. The said opportunities have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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