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TMI Blog2003 (11) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... . Murbad unit was also visited and records verified as to whether coils were slitted and sent to Dombivli and nothing incriminating has been found as seen from the statement of Shri N. Hariharan, Asstt. Manager, Excise of the Murbad plant. Records seized from the Murbad plant have not been relied upon against the appellants. In the above circumstances, we hold that the maintenance of separate register is not sufficient proof of non-receipt of inputs in the appellants factory. Regarding the finding of the Commissioner that the consignments in dispute could not have been transported on the vehicles on which they are stated to have been transported - There is no material to show that the transporters records do not show the transport of the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Appellant. Shri A. Shukla, DR, for the Respondent. [Order per : Jyoti Balasundaram, Member (J)]. By the impugned order, the Commissioner of Central Excise, Mumbai has confirmed a duty demand of Rs. 55,35,976/- representing Modvat credit wrongly availed on H.R. Steel coils on the strength of Central Excise invoices issued by M/s. Lloyds Steel Industries Ltd., Wardha during the period 12-3-97 to 26-3-97 without physical/actual receipt of the consignments covered under such invoices and has imposed a penalty of equal amount on the assessee company, along with penalty of Rs. 5,50,000/- on Shri Pankaj Desai, the Joint General Manager of the company. The finding is based upon the following :- (i) The non-accountal for the receipt of the 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit was availed also indicated Annexure II Challan number from which it could be identified that the said Central Excise Invoices were issued by M/s. Lloyds Steel Industries Ltd., Wardha. The explanation of Shri Maruti R. Walekar, Material Asstt. Officer in his statement dated 24-1-97 is that he was maintaining account of incoming raw materials in one register and in addition, he maintained another Register for the period 12-3-97 to 26-3-97 and this register showed materials received from Murbad. Shri Pankaj Desai, Joint Manager of M/s. Lloyds stated that their company was engaged in the manufacture of Cold Rolled steel strips for which Hot rolled coil was the raw materials, H.R. coils were procured from M/s. Lloyds Steel Inds. Ltd. and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records having of receipts and consumption in the form of coil cards, issue slips, etc. were verified at the time of search and no discrepancy in consumption of inputs was noticed. There is nothing on record to show that the appellants received inputs from any other source so as to be able to manufacture their final products. There is also no evidence on record that the consignments in question were found elsewhere. Murbad unit was also visited and records verified as to whether coils were slitted and sent to Dombivli and nothing incriminating has been found as seen from the statement of Shri N. Hariharan, Asstt. Manager, Excise of the Murbad plant. Records seized from the Murbad plant have not been relied upon against the appellants. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld by the Tribunal in the case of Commissioner of Central Excise v. Dashmesh Casting (P) Ltd. [2000 (40) RLT 1077]. 4. Further, the report of the Cost Audit appointed by the Commissioner on Special Audit, conducted for the period in dispute clearly shows that the inputs on which credit was availed were physically received and consumed for production, except for the invisible loss being less than 1%. This report has been brushed aside by the Commissioner on the ground that the audit was conducted on the basis of records made available to the Auditors and facts of suppression or manipulation were no brought to their notice. We are of the view that Cost Audit Report cannot be discarded on the above grounds, as we find that the scope of the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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