9911796707
TMI Blog2004 (7) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... counted. They also searched another firm engaged in the manufacture of biscuits on the next floor by the name and style of M/s. Diamond Biscuit Company. They found that both firms manufacture biscuits with the brand name Diamond. Certain stocks of biscuits were found unaccounted and documents were seized. On subsequent visit attempt, to remove biscuits, which were product of the appellant-firm, without preparation of bills and challans of M/s. Diamond Biscuit Company was thwarted and goods seized. After considering the material in the enquiries, evidences, a show cause notice was issued proposing - (i) Demand of Excise Duty of Rs. 44,94,276/- for the appellant firm. (ii) Confiscation of biscuits worth Rs. 2,69,553/- seized on 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the tempo. (c) The diary/notebook alleged to have entry of maida and sugar amounting to 2,19,720 kgs. in one month i.e. October, 1995 and consumption of the same, for manufacture of the unaccounted biscuits and taking the same figure per month for all the 4 months of the year 1995/96. Assuming the same level of receipt of maida and sugar and producing the biscuits from that, as per the figures of October, 1995, for the total factory production was arrived. Duty demand of Rs. 44,94,276/- has been calculated on such production as per Annexure to the S.C.N. (d) Examining the charge of duty demand of Rs. 44,94,276/- made and confirmed, it is found - (i) Notice alleges that the said document, showing receipt of maida an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sugar in October, 1995. The appellant further gave a plausible explanation of 25% of maida/sugar quantity to be used in the manufacture of biscuits and remaining used up by sale in speculative market on profit, since October 1995 was month of Diwali/festival when the demand and price of such commodity would go up. That explanation has been dismissed on the grounds that resale bills have not been produced. When there are no purchase bills for the speculative hoarding of maida and sugar, expecting a self confessed speculator to prepare resale bills, for maida and sugar, cornered by him, for sale on profit is seeking the impossible. (iv) The rejection of a plausible explanation on untenable, unrecoverable grounds without checking the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Preventive Officers. Such orders are required to be set side. (vi) The unaccounted production as per the note book and alleged as at Annexure A to the SCN cannot be established. (e) The units are manufacturing the same brand name goods and have removed goods of one unit on the documents of the other and consequent duty liability by denial of brand name clause and clubbing of clearances of the units. The liability to duty and penalty and/or confiscation of the biscuits under seizure at the factory and in the tempo and order under Rule 173Q(2) could be arrived thereafter. Liability to penalty under Rule 209A can be then determined. For this purpose only, the order is to be remanded back after setting the same aside. 4. Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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