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TMI Blog2009 (1) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... d excisable goods without payment of duty to the tune of Rs. 6,83,427/-. It was observed that the assessee had maintained a parallel set of invoices for effecting clandestine clearances of its final products. On a perusal of statutory records, it transpired that clearances made to M/s. TI Cycles and M/s. Wright Saddles were not under central excise invoices and the duty collected as per parallel invoices had not been remitted to the exchequer. In his voluntary statement dated 22-1-98, Shri Sharad Jalan, Director of RKBS admitted clearing excisable goods without payment of duty to buyers such as M/s. TI Cycles and M/s. Wright Saddles. They (RKBS) were compelled to evade duty owing to stiff competition in the market. The department collected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest Section 11AB of the Act for the delay in payment of duty found to have been evaded, in the impugned order, the Commissioner (A) affirmed the order of the original authority. He rejected the plea of RKBS that the demand was made based on assumptions and presumptions and that there was no evidence to support the finding of evasion based on the input output ratio, production capacity, consumption of raw materials etc. He found that the Director, RKBS had admitted clandestine clearances of bright steel bars involving duty of Rs. 6,83,427/-. As regards the removals covered by 92 delivery challans recovered, he did not accept the contention of RKBS that only a few of those challans covered clandestine clearances and others were for move ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory was barred by limitation. 3. We have also heard ld. JCDR who reiterated the findings of the Commissioner in the impugned order. 4. After the hearing was concluded on 20-11-2008, the ld. Consultant submitted a letter dated 29-11-2008. It was requested in the letter that the matter be considered to be part-heard. A study of Annexures C and D to the mahazar furnished to him after the hearing was closed showed certain material information not intimated to the appellants earlier. The same were furnished by the Revenue on the directions of the Bench. The ld. Consultant took us through Annexure IV to the Show Cause Notice which had shown unaccounted shortage of finished goods as 168.972 M.Ts. The adjudicating authority had failed to n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial consumed without accounting, the officers had taken into account the physical stock of 45.541 MTs of raw material that was available on 5-11-97. The appellants contested the correctness of this quantity on the ground that the same was ascertained without physical weighment. In this connection, we observe that the departmental officers had ascertained raw material stock on 5-11-97 by meticulously aggregating the weights of individual pieces, with reference to the dimensions of coils, available in the factory premises. The worksheet showing physical balance formed part of the mahazar. We note that not physically weighing each piece did not lead to incorrect ascertainment of the physical stock. In factories such as steel plants, engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants that the delivery challans had covered mostly movement of materials other than bright steel bars. The ld. JCDR also did not contest the submission of appellants in this regard during hearing. The appellants had furnished worksheets to show that the 92 challans had covered bright steel bars involving duty of Rs. 53,391.90 only. We accept the plea made by the assessee in this regard and vacate the demand under this head in excess of Rs. 53,391.90. As regards an amount of Rs. 24,000/- held due on account of removal of manufactured scrap, the appellants have not disputed the liability. Therefore, this demand is also upheld. 7. As regards the penalties imposed, we find that the clandestine clearances have taken place before and since 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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