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TMI Blog2010 (1) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... ough forgings were being purchased without being accounted in the records, it is reasonable to infer that the finished goods has also been cleared clandestinely without payment of duty, appeals are dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... even Shri Amar Nath could not give any satisfactory explanation to the investigating officers and he said that only finished goods had been cleared and no rough forgings had been sold as such, it appeared that the above mentioned rough forgings, after being furnished into automobile/tractor parts had been cleared clandestinely without payment of duty. It is on this basis that a SCN dated 8-1-2004 was issued for - (a) demand of central excise duty amounting to Rs. 3,64,836/- along with the interest, chargeable on finished goods valued at Rs. 22,80,222/- alleged to have been cleared clandestinely without payment of duty; and (b) imposition of penalty on the Appellant firm u/s 11AC of the Central Excise Act, 1944 and on Shri Amar N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (188) E.L.T. 408, it was held that no liability can be fastened on the basis of the figures in the balance sheet and that the Department should have made inquiries from the buyers of finished goods. Same view has been taken in cases of M/s. Melton India (P) Ltd. v. CCE reported in 2005 (181) E.L.T. 129 and M/s. Arch Pharmalabs Ltd. v. CCE reported in 2005 (182) E.L.T. 413 (Tri.-Bang.). (2) In a recent case too, M/s. Atlas Conductors v. CCE reported in 2008 (221) E.L.T. 231, the balance sheet figures have been discarded and it has been held that duty demand is to be based only on the actual manufacturing activity and not on presumptions. (3) Department's allegation of unaccounted purchase of rough castings is without any basis, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... private records of raw-material purchase, production, sale etc. can be relied upon, there is no reason why the balance sheet figures cannot be relied upon and that since the appellant have admittedly sold only the finished goods, it is clear that the rough forgings found short have, after being furnished, been cleared clandestinely as MV parts without payment of duty. 3. I have carefully considered the submissions from both the sides and perused the records. The appellant firm receives rough forgings of various parts of motor vehicles/tractors and processes the same to manufacture tractor/MV parts. In some cases, they send the semi-finished goods out to job worker for certain process. Since the Appellant admittedly clear only the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed goods manufactured and cleared and sent out for job work but not returned during 1-4-2002 - 10-1-2003 period. The balance sheet figures are, after all, checked and authenticated by the auditors and there is no reason to disbelieve the same. The Tribunal's judgments cited by the Appellant are not applicable to the facts of this case. When huge quantities of rough forgings were being purchased without being accounted in the records, it is reasonable to infer that the finished goods has also been cleared clandestinely without payment of duty.
4. In view of the above discussion, I do not find any infirmity in the impugned order. The appeals are dismissed.
(Pronounced in open Court on 22-1-2010) X X X X Extracts X X X X X X X X Extracts X X X X
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