9911796707
TMI Blog2006 (10) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... . 10,000/- each on M/s. Sesa Kembla, supplier of coke, Mr. Narendra Pai, Mr. Dominic and on Mr. Venkateshwaran, officers of the company imposed by the Commissioner, in his impugned order. 2. The facts of the case are that the applicant M/s. Sesa Industries Ltd. is engaged in the manufacture of pig iron. The main raw material for the same is metallurgical coke. They use metallurgical coke of the size between 20 mm and 60 mm in their blast furnaces. The metallurgical coke below 20 mm is commonly referred to as nut coke. Nut coke arises during the handling of metallurgical coke, which is brittle in nature and liable to break into pieces. As per the applicants contention, such nut coke is not used as it lowers the efficiency of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 2-2-06 alleging that the applicants had imported Chinese metallurgical coke and claimed the benefit of Notification No. 44/2000 which made it mandatory to follow the provisions of the IGCR Rules, 1996, which were not maintained by them and that it was not possible for the applicants to use the nut coke in their blast furnaces, as is evident from the fact that, while receiving metallurgical coke from M/s. Sesa Kembla, the coke was being screened and nut coke was being returned back and that the Chinese metallurgical coke has also undergone similar screening and further that the nut coke so obtained from the Chinese coke was transferred by the applicants to M/s. Sesa Kembla, which had resulted in violation of Rule 4(2) and (7) of IGCR Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be mixed with the iron ore and then charged in the blast furnace for manufacture of pig iron and that they followed this procedure which has been incorrectly dismissed by the Commissioner as being theoretical in nature without producing any evidence to that effect. The fact that they have consumed the nut coke in the blast furnace, is established from the production report submitted by them and which in fact form the basis to the Show Cause Notice and shows consumption of nut coke during the period when Chinese metallurgical coke was used by them in the blast furnace. They have not transferred nut coke to M/s. Sesa Kembla and therefore the question of not observing all the conditions of notification does not arise. Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losing stock of the day. In the said register M/s. Sesa Industries Ltd. had not separately shown any quantity of nut coke generated and/or otherwise disposed. Since the quantity imported and quantity consumed, during the said period were exactly matching i.e. 27336.78MT, it appeared that either there was no generation of nut coke or that the quantity consumed included the nut coke. He submitted that the daily production report maintained by them for this period were examined as well as for the period before and after dates of consumption of the imported Chinese coke and the examination revealed that before starting consumption of the Chinese coke i.e. prior to 25-3-01 as well as consumption of imported Chinese coke i.e. 26-9-01, though Sesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return to M/s. Sesa Kembla on such dates Despite this fact the records of M/s. Sesa Kembla showed receipt of nut coke from Sesa. On all such dates, the fact that Sesa Kembla had collected and taken back the nut coke generated from the imported Chinese coke establishes that nut coke has not been consumed but returned to Sesa Kembla. He cited several such instances, from the order which showed that the production records have been manipulated as even when there was no generation of nut coke from the coke received from Sesa Kembla still Kembla coke have lifted the nut coke from Sesa and the quantity so lifted was more or less same, as what is shown to have been consumed by Sesa. In view of this, it was submitted that nut coke was not co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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