9911796707
TMI Blog2003 (7) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... to provide by converting the incoming alternative current provided data processing machine and parts direct current and stepping down the voltage to the level required by the machine. Part of the SMPS exported by the appellant was returned as rejected by its customers and appellant where possible repaired these goods and re-exported and where it was not possible, broke them down into components. 2. The officers of the Directorate of Revenue Intelligence visited the appellant s factory in February 1997. No panchnama or other documents deriving the results of any stock taking or the result thereof was drawn. It appears that there was some discrepancy in the account maintained by the appellant. The statements of various employees of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-96, the total value of such shortage has been worked out as Rs. 3,39,27,608.37. (b)1. M/s. Ultra Tek Devices Ltd., during the period 1993-97 have received RMA which were in excess/misdeclared as compared to the quantities showed in the respective import documents declared to the Customs, namely, the bill of entry, invoices and the bonds submitted to the Customs. The total value of such excess/misdeclared received RMA for this relevant period as Rs. 16,15,722.51. (b)2. Similarly, excess were found in case of raw materials/components in the WIP Area at the time of statutory audit for the period 1995-96 and from 1-4-96 to 31-12-96. The total value of such excess was Rs. 2,72,77,584.50. The notice thereafter proposed to recover duty am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no physical verification by the officers of the stock of RMA in the factory. In other words, the total quantity of RMA that sought to have been present as derived from the import document was not compared with the total stock of RMA that was present so as to determine whether the stock tallied or there was a shortage or excess. We do not find it possible to see how a shortage in a particular material could be determined without such goods being physically verified unless of course, there is other material to indicate that positions. Despite his best efforts, the departmental representative is unable to cite such evidence. He emphasised what he says are admissions made by employees of the appellant. Amar Zaveri, in his statement on 1-4- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndom scrutiny of selected RMA which was done by the officers. However, the mere recitation of shortage and excesses is not sufficient unless it is established accepted by the person whom the notice is received. In the absence of specific evidence of shortage this is merely one version put forth by the department. Emphasis is also placed by the Commissioner upon the statement furnished to the bank by the appellant of work in progress in which larger quantities of SMPS is given than the actual one shown. The appellant says that these figures were inflated to show to the bank a better position than actually existing. The Commissioner s view that the company should be responsible enough to show the lowest picture to the bank is no answer. We ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sical quantity, etc. Kulkarni s statement was recorded on this date. The statement does indicate excess and shortage in some cases. The explanation tendered by the appellant is that the column shows the receipt of goods on the shop floor, work in progress, the remaining being in the store. The excess, he says, would arise if the customer who had sent the RAM s of one kind has been supplied the different goods. We must confess that we find this explanation somewhat simplistic. At the same time, we do not see how this statement, in the manner in which it stands, can form the basis for any allegation of shortage or excess as claimed by the department. The statement is not very clear and the explanation tendered by the persons concerned are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SEEPZ administration as well as the Customs department. There is no allegation that these statements were false or wrong. They have not been even referred to. Nor is there any contention that the Customs department or the SEEPZ administration ever found any discrepancy. A charge ignoring all these and relying upon a single document with reference to which a statement has been made does not appear to us to be sufficient to justify the demand for duty on the alleged shortage. This is, of course, without regard to the other fact that in terms of the notification, it was the Development Commissioner who was required to be satisfied. There is no expression of dissatisfaction by the Development Commissioner. 10. Point 3(a) of the summary of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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