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TMI Blog2017 (11) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... he business of VSSL including the present appellants. In the search and verification of stock in the premises of the present appellants resulted in seizure of 96MT of CR Strips valued at Rs. 21,12,000/- which was found in excess of the stock recorded in RG-23D Register. In addition, cash of Rs. 2,30,000/- was also seized being sale proceeds of excisable goods as per Panchnama drawn. 3. On scrutiny and verification of records revealed that VSSL were procuring Hot rolled coil for manufacture of Cold rolled coils/strips manufacturing process involved in the manufacture of CR Strips/Coil was Pickling, Rolling and Annealing. A file marked SI. No. 6 recovered from one Mr. J. L. Dubey production Manager of VSSL contained production comparison of details contained in the said file with that of RG-1 Register. It appeared that against the actual production of 1177.597MT only 435.21MT was accounted in the RG-1 Register. Shri Ajay Kumar Virmani in his statement admitted the same to be correct. Mr. Virmani further stated that he was the MD of VSSL and they manufactured CR Strips from HR Strips, since 21st May, 1991 with raw material that is HR Strips/Coil was purchased from SAIL, TISCO a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its partner actively associated and dealt with sale, purchase and storage of CR Strips on which no duty appears to have been paid and rendered themselves liable to penal action. Accordingly, the appellants were required to show cause as to why 96MT of CR strips valued at Rs. 21,12,000/- should not be confiscated under Rule 173Q of the said Rules further the amount of Rs. 2,30,000/- recovered in cash should not be confiscated under Section 121 of the Customs Act. Being the sale proceeds of excisable goods removed clandestinely without payment of duty. 6. Show cause notice was adjudicated on contest vide Order-in-Original dated 20th December, 2004 and among others, the appellants goods seized were held liable to confiscation of 96MT of CR Strips valued at Rs. 21,12,000/- with option to redeem on payment of redemption fine Rs. 5 Lakhs, further absolute confiscation of cash Rs. 2,30,000/- was ordered under Section 121 of the Customs Act as made applicable to Central Excise provisions and further penalty of Rs. 50,000/- each on the partners Shri Nemi Chand Jain, and Shri Ashok Kumar Lahoty was imposed. 7. Being aggrieved the appellants had preferred appeals before this Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve that VSSL did not have the required facility to manufacture CR Sheets and the unit is closed for about 20 years now. Hence this position cannot be verified either by referring to the process of manufacture, in the factory or the record thereof. Bereft of such records, in order to examine the correctness of the appellants claim, the Learned Commissioner examined the definition of CR Strips and CR Sheet based on common trade parlance. He referred to the website of Ministry of Steel, under the head glossary of terms/definitions, found the definitions as under: "SHEET: Thin flat finished steel products, Width: + 500MM, Thickness: (-) 5mm. Supplied in cut/straight length. Sheets are produced/supplied in hot rolled/cold rolled/coated condition and accordingly, known as Hot Rolled (HR) Sheets or Cold Rolled (CR) Sheets or Coated Sheets. STRIPS: Hot/cold/coated Flat rolled products, supplied in regularly wound coils of super imposed layers. Accordingly, know as HR Strips or CR Strips or Coated Strips. Depending upon width, strips are sub-classified as wide strip or narrow strip as under: WIDE STRIPS: Strips of widths 600mm & above. Also known as Coils in India and Wid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the partner - Ashok Kumar Lahoty. 10. Being aggrieved the appellants are before this Tribunal. The Learned Counsel for the Appellant urges that so far the finding of Learned Commissioner as regards capacity of VSSL to manufacture CR Sheets, is vague and fit to be set aside. The Learned Commissioner have failed to make an enquiry with regard to the capacity of manufacture of VSSL, as regards CR Sheets. Without any proper evidence, the Learned Commissioner have whimsically held that VSSL had capacity to manufacture CR sheets. The Learned Counsel also refers to the statements of the Managing Director of VSSL who have never stated that they manufacture CR Sheets. In the statement of the MD of VSSL, he has particularly mentioned that they procure HR Sheets, HR coils from which they manufacture CR Strips. Thus the whole case of Revenue is false, as the allegation of Revenue is that the appellant have clandestinely procured the CR Sheets found in their stock on the date of inspection from VSSL. The Learned Counsel further relies on a Coordinate Bench ruling of this Tribunal in CCE Vs Shivathene Linopack - 2013 (297) E.L.T. 284 (Tri.-Del.), wherein goods were found in excess with fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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