9911796707
TMI Blog2005 (10) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... 992, and stock verifications were conducted. The records were found to be tallying with the physical stock of the goods. The officers also seized various private records maintained by the appellants, during the course of manufacture and it was believed that the production as shown in such private record was more than the recorded production in RG-1. 2. As a result of post seizure investigation statement of Shri Sanjay C. Munshi, Managing Director of the company was recorded. Shri Munshi in his statement dated 21-3-92, explained that the discrepancy between the private production records and statutory records was due to fact that the production of any day accounted by the production department as finished goods did not constitute finished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is inspecting the product and Shri Thomas was the in charge of inspection department. 4. Statement of Shri Samkutty John was also recorded on 3-4-92 and of Shri Avtar Singh Rana on 7-4-92. He clarified that the female condoms were not accounted for as the same were manufactured on account of research and development activity. Further statements of Shri Munshi and other persons were also recorded during the course of investigation and it was mainly contended by the deponents that the production in the private record is being taken continuously for all the three shifts whereas inspection is not done in three shifts and hence there is a considerable back log in the inspection department and the final figures which are available after com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bber board; that there is no other corroborative evidence in the form of sales bills; delivery challans, identity of customers, unaccounted payments, unrecorded orders, illegal procurement of raw material; that the consumption of electricity for the period in question was comparable with the preceding and succeeding months and as such there was no additional consumption of electricity. They also referred to three dates i.e., 10-2-92 to 13-2-92 and 19-2-92 where there was nil production as per their private record whereas in the statutory record production was shown. From this they tried to conclude that the production was entered in RG-1 record after the goods are tested and checked for quality control, which may not be the same date when t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me on payment of redemption fine of Rs. 5 lakhs. 8. We have heard Shri V.S. Nankani, ld. Advocate appearing for the appellants and Shri Vimlesh Kumar, SDR appearing for the revenue. 9. It has been strongly contended before us that the Commissioner has not taken into consideration, the various pleas raised by the appellants. The appellants has categorically stated before the Commissioner that there is no market for hand gloves in India and they had not started commercial production for female condoms which require approval by the Health authorities. It is seen that there is no rebuttal to the above pleas of the appellants by the Commissioner. It is also seen that almost all the persons, whose statements were recorded during investigation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The difference in the figures of production records and statutory records having been explained satisfactorily by the appellants, the findings of the Commissioner as regards clandestine manufacture and removal of the same are unsustainable. We do not find any evidence produced by the revenue to that effect. Whereas the appellants, right from the beginning in their various statements have clarified the position. The revenue has also not rebutted the appellant s stand that the female condom production was only on the basis for research and development purpose and was not having any market. 10. For the reasons recorded above, we set aside the impugned order and allow both the appeals with consequential relief to the appellants. (Pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
