9911796707
TMI Blog2004 (3) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944 besides imposition of mandatory penalty of the like amount in terms of Section 11AC and Rule 173Q of the C.E. Rules, 1944. The original authority had also ordered for interest in terms of Section 11AB of the Act. 2. Brief facts of the case are that the appellants are engaged in the manufacture of cotton yarn falling under Chapter 52 of the CETA, 1985. The officers of the HPU on verification of the records found that the appellants have suppressed the production of cotton yarn. It was also found that they have not accounted for the issue of cotton for manufacture of yarn. Sixty six bales of cotton were found in excess without accounting for in the statutory register and the same were hence seized under a mahazar. The same were releas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) defective cone produced by the winder might be rewound and hence the chance of accounting for second time (iii) full cones which have full weight and were of good quality only were recorded in the RG 1 register (iv) some times due to rewinding or any other quality control problem the same cone weight might have been shown in private records for the second time. He has also submitted that the officers at the time of visit have verified the stock and RG 1 and found the same to be correct. The alleged shortage was found by comparing the entries made by the appellants in the private records which was maintained for the convenience of the appellants for the purpose of checking the defective goods and also wages to be paid to the workers. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexure to the Show cause notice that the alleged difference in weight of 9,035 Kgs of cotton yarn pertained to six different types of cones, and the department has even taken into account difference of merely 10 Kgs to substantiate their charges against the appellants. The appellants have explained the reasons for the difference such as (i) the opening and closing stock of yarn on cone winding machine at the beginning and end of the day might vary (ii) defective cone produced by the winder might be rewound and hence the chance of accounting for second time (iii) full cones which have full weight and were of good quality only were recorded in the RG 1 register (iv) some times due to rewinding or any other quality control problem the same con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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