9911796707
TMI Blog2003 (11) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral Manager of M/s. KSPL against the Order-in-Original No. 23/98, dtd. 29-1-98 passed by Commissioner of Central Excise, Hyderabad-III. M/s. SSPL are manufacturers of M.S. Ingots/Runners and Raisers falling under sub-heading No. 7206.90 of Central Excise Tariff Act, 1985. They started their production in March 1988. M/s. KSPL are manufacturers of M.S. Bars and Rods falling under sub-heading No. 7214.90 of Central Excise Tariff Act, 1985 and are availing exemption under Notification No. 202/88-C.E. M/s. KSPL are having their premises adjacent to M/s. SSPL. 2. On information that M/s. SSPL are manufacturing and clearing goods clandestinely, the Central Excise officers of Hyderabad searched their factory premises and conducted investigati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of all the four appellants and pleaded that demand for clandestine removal has been worked out on the basis of the private register showing the number of heats and electricity consumption register. The Department has assumed production average of 3.75 MTs per heats and total production has accordingly been worked out. The differential quantity as shown in RG1 register and as worked out from the number of heats is shown as clandestine manufacture and removal. This method of determining excess production is incorrect as every heat would not result in emergence of marketable ingots which can be entered in RG1 register. Normally, 25-30% of output in every heat is in the form of defective ingots having blow holes, greater carbon conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produce evidence of receipt of raw material for manufacture of the goods said to have been cleared clandestinely in receipt of illicit sale proceeds. The Tribunal has been consistently holding that a single private register even if recovered from the factory cannot be sole basis to allege clandestine removal specially when the author of the document has not been examined and there is no corroborative evidence in the form of receipt of raw material capacity of the factory to manufacture the quantity in question, transportation of consignment, interception of illicit removal of finished goods, etc. Since there is no evidence on purchase of raw material, or receipt of sale proceeds and no interception has taken place on the way for clandestine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to number of heats, number of ingots manufactured. He also confirmed the demand of Rs. 27,34,645/- on the basis of ingot movement register from M/s. SSPL to M/s. KSPL. We find that on one hand the Commissioner has found excess production of 4096.544 MTs of M.S. Ingots from the heat register, electricity consumption register and log book of induction furnace and on the other hand, he also found clandestine clearances of about 4257.773 MTs of M.S. Ingots for the period from 3-4-90 to 5-3-92. We find that if the production determined from heat register, log book of induction furnace register and electricity consumption register is determined, then in addition to that, production of additional ingots cleared to M/s. KSPL have not been explain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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