9911796707
TMI Blog2008 (10) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... f Quartz - consignments which were weighed at the time of receipt in the factory. In other words, it was found that in respect of quartz the quantity mentioned in royalty slip, weight slip, bill and GR forms consistently showed lesser quantity than the private records maintained by the appellant (which was maintained based on weighment) showed the higher quantity. The excess receipt of quartz was explained as due to supply quartz of size less than 40 mm along with material of more than 40 mm which was required and ordered by them. It was also found that two consignments of MS scrap weighing 28.90 MT received were found to have not been accounted in the books of accounts. It was claimed that these two consignments of MS scrap were found to be substandard even before actual arrival of the consignment within the factory and they were returned back to the sender. (c) It was also noticed that as per entries maintained at the factory gate there was of clearance of one consignment of ferro silicon on 12-8-94 in truck No. UDD 1891 but no invoice was found issued. It was confirmed by Shri Shaillesh Mishra, authorized signatory of the appellant that on 12-8-94, 300 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g two consignments of MS scrap amounting to 28.90 MT, they were found to be substandard even before actual arrival of the consignment within the factory and they were returned back to the sender. This explanation, in connection with the case by the sales tax Department was accepted by the Sales Tax Tribunal and the case initiated by Sale Tax authorities by their visit on 1-9-94 has been closed. Therefore, to conclude that MS scrap has been used in excess than what was mentioned in their RG 23A (being modvatable input) is legally not sustainable. The sale tax authorities also registered the case against excess of 259 tonnes of quartz consequent on their visit on 1-9-94 and the sales tax Tribunal has accepted their explanation that the said excess quantity relating to similar size quartz material which was unusable and sales tax case has been closed. (c) Regarding the allegation that 300 bags of ferro silicon is removed without payment of duty Director of the company Shri A.K. Dalmiya mentioned that matter needed to be investigated. The department has not further investigated into this. However, the employee, who has given the statement that the goods have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received excess quantity of quartz is not being disputed by them. This is in fact proved by the private records which not only indicated the receipt of higher quantity but also issue of higher quantity on a day to day basis. The claim that such material are treated as not usable and threw them into pits is not substantiated by them by any evidence. It involves a huge quantity of about 600 - 700 MT for the period of about six months and it accounts for 100s of lorry loads and manpower to segregate and transport them. The private records indicate not only the suppression of quartz but also suppression of charcoal and steel scrap. The plea on behalf of the appellant that some portion of quartz gets broken up in transport is not acceptable as quartz are fairly strong and not much breakage is likely in transport. The freight for transportation of bulk cargo is normally charged by weight and not on a truck basis. The allegation that they were involved in the offence repeatedly was based on 1993 seizure and reliance placed by the learned advocate where the order has been set aside by the Tribunal and remanded relates to a case of seizure dated 20-5-92. If the scrap was returned by them, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls but the same have been used in the manufacture. 6.4 The excess receipt and use of raw material is not limited to only quartz. The private records indicate higher quantity of charcoal having been received and issued for production. There is also some quantity of steel scrap which is received but not accounted. The claim that the excess quantity of steel scrap was sent back without accounting in the books of account is not convincing. There is no evidence that the same was received in the factory and examined before it was found to be substandard and thereafter returned to the supplier. Such claim of return appears to be not genuine. 6.5 The attempt to explain the variation between the quantities accounted in the private records and the statutory Registers has failed. In view of the above, the inescapable conclusion is that the appellant has procured excess raw materials and systematically suppressed accounting part of the raw materials in the statutory records and used them in the production. The private records are evidence to their malpractices. The technical persons have also given details about the production capacity of ferro silicon per charge, per heat and per ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
