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TMI Blog2007 (5) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 4/97-C.E., dated 1-3-97 and successor-Notifications) and imposition of equal amount of penalty by the Commissioner. The demand is for the period Jan 98 to Sept. 99. During this period, the above Notifications exempted the following goods from payment of duty of excise :- Paper and Paper Board articles made therefrom manufactured starting from the stage of pulp in a factory, such pulp contains not less than 75% by weight of pulp made from materials other than bamboo, hardwoods, softwoods, reeds (other than sarkanda) or rags. The department, after scrutiny of the Stock Preparation Log Book of the appellants for the above period, came to the conclusion that a part of the paper cleared by the appellants had been manufactured out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t stream of material which was also received in the blend chest and that was broke , which was nothing but cuttings and waste generated in the course of manufacture of paper in the same factory. At certain points in the course of flow of pulp in the different streams to the blend chest , the composition was noted and these readings figured in the log book. The SCN, however, did not take into account the readings pertaining to broke . It only took into account the readings pertaining to the other varieties of pulp, and on this basis, the composition was taken to be less than 75% by weight of pulp made from materials other than bamboo, hardwoods, softwoods, reeds and rags. Hence the denial of the benefit of the Notifications and the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification Nos. 6/2000-C.E. 3/2000-C.E. to the assessee]. 3. Ld. Counsel further submits that the appellants are a State Govt. Undertaking and they are not used to manipulation. It is submitted that, had it been their intention to manipulate the readings in the log book, they would have done so in respect of the 90 reading also. It is pointed out that a functionary of the company was summoned by the department in connection with the investigations but no statement was recorded from him. There was no enquiry whatsoever into the alleged manipulations. The department could have gathered oral evidence from the persons who made the entries in the log book and maintained the records. This was not done. In the circumstances, according to ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taining the correct composition of the pulp out of which the final product was manufactured during the period of dispute. Ld. Commissioner must include the broke readings also in the determination of composition of the pulp. 6. We have not found adequate evidence of any manipulation of records by the appellants. As rightly pointed out by ld. Counsel, convincing and irrebuttable evidence must be available to dislodge the presumption that a Public Sector Undertaking is not used to manipulation of records. Evidence of this kind is missing in this case. A functionary of the company, who was summoned by the department at investigative stage, was not examined for evidence. The person who made entries in the log book and maintained the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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