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TMI Blog2015 (12) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... dit party, a demand notice was issued on 26.05.2009 alleging short payment of duty of Rs. 3,26,843/- on the quantity of 34174 pieces of inserts being cleared clandestinely without payment of duty. On adjudication, the duty demand was confirmed and penalty under section 11AC of Central Excise act, 1944 was imposed. Aggrieved by the said order, the appellant filed an appeal before the ld.Commissioner(Appeals). The ld.Commissioner(Appeals) after considering the evidences on record, set aside the impugned order and allowed the appeal with consequential relief. Hence, the Revenue is in appeal before this forum. 3. Reiterating the grounds of Appeal, The ld.AR for the Revenue submits that on the basis of difference in the production figure record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insert register maintained at the foundry level and the statutory RG-I register, as prescribed under the Central Excise Act, 1944, had been removed without payment of duty. He submits that in his statement on 23.10.2008 before the department, their Director Shri Mahesh Kumar Sureka has explained in detail the process of manufacture and recording of the production of inserts at different levels and clearance of finished inserts on payment of duty. It is his contention that the inserts were used by Indian Railways and there was no other buyer to purchase the said goods. Hence, the allegation of clandestine removal is untenable in law and accordingly rightly set aside by the ld. Commissioner(Appeals). 5. Heard both sides and perused the reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded in their RG-I Register because the RG-I Register relates to the quantity of finished goods produced and packed in bags; that various (intermediate processes/operations) are undertaken after receipt from the foundry level before the same are entered in the RG-I Register, such as testing, quality control, etc; a copy of the process Flow Chart was submitted; that there is no exact one-to-one correlation between the daily production as recorded in the two Registers; that the rejected output (pieces) are remelted; that after the initial run of operation of 8 months (in March 2008) they were able to stabilize (and steady) their production process in order, so that from the current financial year they have been able to undertake finishing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows: "Earlier, for this purpose the Government had prescribed the records to be maintained, popularly referred to as "Statutory records". The statutory records under Central Excise Rules, 1944 were dispensed with in the year 2000 and it was decided to rely on private records of the assessee. This was done as a measure of simplification . Therefore, neither of the two Registers maintained by the Appellant can be considered to be statutory record. However, it has been prescribed under Rule 10 of the Central Excise Rules, 2002 that there is a mandatory requirement of maintenance of record of Daily Stock Account and it has been specifically provided that every assessee should maintain proper records, on a daily basis, in a legible man ..... X X X X Extracts X X X X X X X X Extracts X X X X
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