9911796707
TMI Blog2005 (12) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... re (BCW), both excisable commodities. The departmental officers visited the factory premises on 6-6-96 and found excess stock of enameled copper wire. The excess stock amounting to 733 Kgs was seized. The search of the premises revealed several incriminating records. It appeared that the appellants suppressed the production of goods and duty short paid during the period from January, 1994 to June, 1996 amounted to Rs. 16,32,806/- in respect of bare copper wire. Penal proceedings were initiated against the appellants. Consequent to the proceedings, the adjudicating authority confirmed a total demand of Rs. 62,89,701/-. He confirmed a duty of Rs. 9,54,00/- in respect of super enameled copper being the differential duty arrived at by adopting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the records. Q. It has been alleged that the noticees's factory produced the subject goods in excess of the quantity intimated in the RG 1. If so, was any verification made to find out to whom these goods were sold or how these goods were disposed off? A. I am not very sure whether such a verification was done. I have to refer to the case records before any reply can be given to this question. Subsequently on 29-9-2000, further cross examination was held and the Investigating Officer contended as follows :- a. "the method adopted by us to quantify the goods which have escaped payment of duty was to take the quantity as shown in the packing slips and compare the figures recorded in the RG I Register." b. "I may also add that because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e double reckoning of production on account of packing slips and reduced the demands. Therefore, he requested the Bench to confirm the demand in the OIO. 7.We have gone through the records of the case carefully. In this case, there is no thorough investigation, at all. In a number of rulings of the Tribunal, it has been held that for confirming clandestine production and removal, private records require corroboration. Consumption of electricity, purchase of excess raw material, evidence of purchase of unaccounted goods by buyers etc., normally establish clandestine production and removal. In this case, the entire charge rests on the packing slips recovered from the appellants. The appellants undertake job work also. Therefore, the packing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eps not to retain any evidence, which would have indicated the quantity of fuel consumed. Thus, the argument that there was no excess production because the electricity consumed was less, again holds no water. Similarly, since the assessee had taken clear steps to keep the excess production totally out of the accounting procedure, the question of estimation of production on the basis of raw material consumed, as reflected in the records would not provide any clue as to the total production." A reading of the above paras indicate that the OIO has been issued on the basis of the presumptions and assumptions. In order to bring to book duty evaders, Revenue should do thorough investigations. If duty evaders do not leave any trace of their offe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
