9911796707
TMI Blog1998 (9) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are further liable to pay interest under Section 11AB ibid . The ld. Commissioner further held : The charge of wrong availment of Modvat credit on spot welding electrodes stands established against M/s. M.U.L. However, a substantial part of the demand covered by the show cause notice dated 27-12-1993 on this score is time barred. Only an amount of Rs. 7,600/- out of the total demand of Rs. 3,76,803.71 on pro rata basis is liable to be confirmed on them. The exact amount will be calculated and intimated to the party by the Asst. Commissioner of Central Excise, Gurgaon..... In addition, the demand of Rs. 2,67,112.00 on spot welding electrodes for the subsequent periods is liable to be confirmed against the party under Rule 57-I of the Central Excise Rules, 1944 . 2. Being aggrieved by this order, the Appellants have filed the present appeals. 3. The facts of the case, briefly stated, are that the Appellants are engaged in the manufacture of Motor Vehicles. A team of Officers of the Directorate General of Anti-Evasion, New Delhi visited the Factory premises of the Appellants on 12-7-1993. They took physical stock of the fully manufactured vehicles. Stock taking of the vehicle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al numbers; that the chassis number so allotted is punched into the computer; that data regarding manufacture of the vehicle gets recorded in the computer from this very first stage; that detailed data is maintained; that after the completion of the assembly, time and date is again entered in the computer; that at this stage, the engine number of the vehicle is also entered in the computer against the respective chassis number; that after this vehicle is put to usual quality control inspection and that the vehicle is treated as fully finished; that the date and time is entered in the computer; that thereafter the vehicle is handed over to the vehicle despatch department and the date and time of handing over is also entered into the computer; that excise gate pass is prepared by the computer based on the data already available in its memory, i.e. the engine number, chassis number, model and appropriate duty calculated by the computer and that the gate pass is printed out by the computer. Simultaneously invoice is also generated, debit is also made in the PLA etc. 7. The ld. Counsel submitted that, thus, the computer keeps the complete history of the vehicle right from the allotmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Revenue from the computer stock. He submitted that the stock position as revealed by the computer represents the quantity which ought to be found in the appellant s premises. He submits that the admitted position was that there was no difference between the computer stock and the physical stock on the date of stock taking. He submits that since the entries are made in the RG 1 Register manually, there may be some posting error; that in the impugned order, the ld. Commissioner ignored the submissions of the Appellant on this score. The ld. Counsel cited certain examples where there may be a mistake on account of postings in the RG 1 Register. It was submitted that sometimes the vehicles got internally damaged at the time of transfer from the production shop to the vehicle despatch department or at the time of loading the vehicles in the truck inside the factory before invoicing. These damaged/defective vehicles when repaired was considered as production of the day. Thus, any internally damaged/defective vehicles, which were repaired by way of dismantling/replacing a body shell were getting entered twice - once at the time of initial production and again at the time of thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the discrepancy between the Computer stock and the entries made in the RG 1 Register during the period prior to 31-3-1992 only. Hence there is no question of invoking the extended period of limitation in terms of the proviso to Section 11A. The ld. Counsel, therefore, submitted that the demand raised in the Show Cause Notice is wholly barred by limitation. 11. Arguing the case for denial of Modvat credit on Spot Welding Electrodes, the ld. Counsel submitted that an identical issue came up before the Tribunal in the case of M/s. TELCO Ltd. and the Tribunal in its Final Order Nos. 2188-95/95-WRB, dated 9-11-1995 held : - 9. We are also unable to equate these electrodes with conveyor belt or wire mesh used as part of the machines. They are needed for welding and are consumed in the process of welding. May be, spot welding electrodes have a longer life period than arc welding electrodes. On that ground, it cannot be held to be part of the machine, while arc welding electrodes is not a part. Our decision in the case of M/s. Gujarat Alkalies allowing the benefit of Modvat credit to Titanium metal anode would be more appropriate to consider this issue. Because, in that case, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese arguments of the party. All these arguments go against the very conduct of the party and the letter dated 27-7-1993 written by them to the Department. The party have voluntarily entered 56 number of vehicles into their RG 1 Register sub-modelwise. Their RG 1 may not mention the engine No. or Chassis No., but it is maintained sub-model wise. It is a prescribed statutory record which has to be maintained absolutely correctly. It is entirely the responsibility of the assessee to reconcile the stock on ground with the entries made in their RG 1 Register accurately. The ld. DR also submitted that in case the Appellants wanted the computer generated data is substituted for RG 1 Register, they should have done so, which the Appellants did not do; that the RG 1 Register was maintained by the Assessee himself and, therefore, any discrepancies found in this Register is to be explained by them; that the Appellants relied upon the computer generated data but they have not been able to pin point as to when and how the error crept in the entire in the RG 1 Register. 15. On the question of removal of the vehicles, the ld. DR submitted that the shortage has been found in the stock on physic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l under the appropriate head. It was submitted that since the RG 1 Register did not give the identifying numbers viz. Chassis No., Engine No. but entries are made modelwise or sub-model wise, therefore, there may be some errors in posting. 20. The Department has not placed much reliance on these contentions and have stated that since there was a difference in the entries made in RG 1 Register and stock found on physical verification, therefore, the burden was on the Assessee to reconcile the deficiency if any. 21. We are conscious that the data on the basis of which entries are made in the RG 1 Register manually is computer generated. We also find that this data incorporates the identifying numbers like consecutive Chassis Sl. Numbers and Engine Number. Thus, the computer generated data is more reliable. We also note that the admitted position is that on the dates of physical verification, no difference was found between the computer generated data and the physical presence of the vehicles. We are also conscious that there has been an excess of 56 vehicles. These vehicles are identifiable as there is a running consecutive serial number and the engine number on the vehicles. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
