2009 (10) TMI 800

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..... rs visited the factory premises and conducted verification of stock of finished goods and found that there was a shortage of 13.865 M.T. out of the total stock of about 190 M.T. of finished goods as per records. Certain private records including a pocket diary maintained by the Director of the Company, Shri Yogesh Agarwal was recovered which contained date wise entries. The Director in his statement dated 12-6-2003 itself clarified that excise invoices have been prepared only in respect of certain entries mentioned in the pocket diary and no excise invoices have been made in respect of other entries. On the very same day, by a letter addressed to the Assistant Director of Central Excise Intelligence (D.G.C.E.I.) 3 (three) cheques of 2.5 Lak .....

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..... the party and the second entry only relating to dispatches. The quantities mentioned in the second entries have been duly accounted and central excise invoices prepared and duties paid. The statement of the Director dated 12-6-2003 nowhere admits that they had cleared such consignments covered by the entries without accounting in the excise records and without payment of duty. Further the payment of Rs. 7.5 lakhs was at the instance of the officers who visited the factory and it was only an advance payment and the Department was under obligation to prove the allegation of unaccounted productions and clandestine clearances. The Department has not produced any evidence relating to excess procurement of raw materials or excess production; the .....

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..... Agarwal. The stock ascertained in respect of MS Tubes, Pipes is recorded as 163.100 MT as against 176.700 MT. Such figures cannot be treated as recorded on the basis of eye-estimation. At any rate the verification reports have been signed by the Director of the Company and has not been agitated till 27-02-2004 which is the date of reply. Not only the stock verification was not challenged but the Director in his statement clearly admitted that only entries which were not tick-marked were accounted in central excise records and invoices prepared. Such confessional statement has been promptly followed by payment of Rs. 7.5 lakhs. A letter has been addressed to the Assistant Director of D.G.C.E.I, wherein it has been clearly mentioned that the .....

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