9911796707
TMI Blog2004 (5) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturers of HDPE Sacks falling under Chapter sub-heading No. 3923.90 for supply to only cement factories. They are availing Modvat credit on the inputs. On 18-3-1996, they had sent 51 bundles of cut fabric to their Job Worker, M/s. Ruchi Enterprises, in vehicle No AP28T 5351. This vehicle was intercepted by the Central Excise Officers near the Job Worker s factory and they found quantity of cut fabric as per challan carried by the vehicle. The officers also found 27 bags of PP granules weighing 675 Kgs, alleged to be without cover of duty paying documents which were seized. On verification of the physical stock in the Job Worker s factory, they found that 8,000 pieces of HDPE sacks/fabric in excess of the recorded balance. The Supervi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not correct in law as the allegations against the appellants are only based on the statement given by the Sleeping Director who was not authorised by the appellants and on the statement of Supervisor of M/s. Ruchi Enterprises (Job Worker). The Sleeping Director, Shri Ashok Soni stated that they were sending PP granules hidden under cut fabric pieces and this activity was undertaken by them about ten times for the last two months. The Supervisor of M/s. Ruchi Enterprises, Shri Dinesh Sharma stated that he does not know why 675 Kgs of PP granules were loaded in the vehicle. Shri Ashok Sony, Sleeping Director had deposed that they used to exaggerate the weight of the granules used in manufacturing of PP bags and excess quantity of PP granu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Modvat credit was not reversed and no duty debited when these were removed from the factory. He also pleaded that 675 Kgs of PP granules were recovered from the vehicle which was carrying the cut fabric from the premises of the appellants for stitching and printing to M/s. Ruchi Enterprises. When the said vehicle was intercepted by the Central Excise officers, the vehicle was coming from M/s. Ashok Polymers Ltd. Regarding the shortage of 8,000 pieces of cut fabrics/sacks found short in the M/s. Ruchi Enterprise, Job Worker of M/s. Ashok Polymers Ltd., he stated that no plaussible explanation was given by Shri Dinesh Sharma, Supervisor of M/s. Ruchi Enterprises. Therefore, the department s case is based on the evidence of the Director o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory without reversing the Modvat credit as admitted by Shri Ashok Soni, Director of the appellants Company. They have also paid duty of Rs. 1,00,000/-. Therefore, retraction by them at the adjudication stage was too late. We find that Shri Ashok Soni had never stated that he was a Sleeping Director as was claimed before us. No evidence was produced that he was Sleeping Director. We also find that the decision relied upon in the case of Nav Bharat Paper P. Ltd. v. C.C.E., Gaziabad (supra) and other relied upon decisions are not relevant to the facts of the present case. We find that statement of Shri Ashok Soni, Director of the appellants Company, recorded on 19-3-1996 wherein he stated that they were sending PP granules hidden un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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