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TMI Blog2005 (11) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... llenged the same impugned order whereby the proceedings regarding imposition of penalty was dropped against Shri Rakesh Bagla, M.D. of both the firms and Shri Basiq Ansari, Excise Clerk of Alfa Castings and Shri R.P. Singh and Shri Sadiq Ali, Excise Clerk of Alfa Springs. 2. Brief facts of the case are that M/s. Alfa Castings Pvt. Ltd. is engaged in the manufacture of MS Ingots from scrap. The entire production of ingots by Alfa Castings Pvt. Ltd. is being sold to M/s. Alfa Springs Ltd. and M/s. Alfa Springs Ltd. manufactures M.S. Bars. The officers of Revenue Deptt. visited the factory of M/s. Alfa Castings as well as M/s. Alfa Springs Ltd. 21-8-1996. Verification of finished goods as well as raw-material was conducted and it was found that there are certain discrepancies in the quantities of finished goods as well as in respect of raw-material present in the factory and balance recorded in the statutory record. Separate proceedings were initiated regarding excess and shortage. From the premises of M/s. Alfa Castings Pvt. Ltd. and from the premises of M/s. Alfa Springs Ltd., certain loose slips were recovered. The loose slips are in respect of raw-material received by M/s. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s norm is fixed after conducting experiments as per direction given by the Tribunal which is evident from the order-in-original passed by Asstt. Commissioner of Central Excise, Jhansi dated 31-10-2001. The production of the ingots as mentioned in the production slips compared that the consumption of electricity during that relevant period shows that they had only consumed 200 to 250 unit for the manufacture of per m.t. of ingots which is not possible. The contention is that investigation was started on the basis that appellants are producing ingots and M.S. Bars and clearing without payment of duty by resorting to theft of electricity. The contention is that the appellant produced a certificate from the concerned officer of the Electricity Board to the effect that there is no case of electricity theft against the appellant. There was power cut as per the record whereas the production slips show the production of goods and in some cases production slips show nil production whereas actually ingots were produced. The appellant also relied upon the log shut supplied by the Electricity Board. 5. The appellant also submitted that during investigation their sanctioned load was 2700 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly sent to their headquarter but from the premises of their headquarter, no such copy was recovered. The enquiries were also conducted from the customers whose names are mentioned in the production slips as customers recovered from Alfa Springs but the customers stated that they had purchased the M.S. Bars from Vinod Enterprises. The contention is that no investigation was conducted from the Vinod Enterprises and the adjudicating authority simply said that Vinod Enterprises is not in existence at the given address, there was no godown to store the goods. The contention is that as per the finding of the Commissioner, the premises of Vinod Enterprises is having four rooms at a yard and M.S. bars can be stored in the yard. The contention is that in these circumstances as loose slips are implanted by their employee just to harm the management, therefore, no demand can be raised. They also relied upon the following decision in support of their argument : 1. Triveni Rubber & Plastics v. CCE, Cochin - 1994 (73) E.L.T. 7 (S.C.) 2. Oudh Sugar Mills v. UOI - 1978 (2) E.L.T. (J172) (S.C.) 8. The appellants also p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y ignored and these were not authenticated by the officer of electricity board. The contention is that Excise Clerks of both the units at the time of recovery of the document i.e. daily production reports admitted that these relates to the production and clearance of the goods and only in reply to SCN, the stand has been taken that these documents were implanted by the employees. 12. In respect of the appeals filed by the Revenue, the contention is that the employees against whom the proceedings were dropped, are directly involved in the evasion of Central Excise Duty, therefore, liable to penal action. 13. Heard both sides and perused the appeal papers. The case of the Revenue is mainly based on the daily production reports recovered from the Alfa Casting Pvt. Ltd. and M/s. Alfa Spring Ltd. M/s. Alfa Castings is manufacturing ingots and all the production is supplied to their sister concerned, i.e., Alfa Springs and same is used in the manufacture of M.S. Bars. The daily production reports contain the details such as the name of the product, date, number of pieces and approximate weight. These reports also contained the details of raw-material receipt from various supp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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