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TMI Blog2017 (12) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee that dispatch figures were recorded and not actual product figures in the RG 1, itself leads to the establishment of the charge that Actual production figures was not recorded and dispatch figures in this case are doubtful. Therefore, it can be established that actual production has not been recorded. Such actual production is not found in the factory, there is established charge of removal of set on invoices - charge of unaccounted production and its clandestine removal is thus established. The Tribunal had upheld the charges of removal of goods but remanded only on limited aspect of reworking of demand and the above findings of the Tribunal was not challenged before higher forum by the assessee - the re-quantification of demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. are having Plant I and II situated at Wagle Industrial Estate, Thane are engaged in manufacture of Safety Razor Blade at Plant No. I (VML I) and Cold Rolled Stainless Steel Strips at Plant II (VML II). During the course of preventive check a tempo loaded with CRSS strips was found standing inside the factory. On enquiry it was found that there was two central excise invoice bearings same serial number in respect of aforesaid strips. The said goods were therefore seized. Further enquiry revealed that M/s VML II had cleared CRSS Strips of 0.1mm and other machinery parts valued at ₹ 1,13,53,482/- during the period Dec 94 to Jan 97 by issuing two set of invoice bearing same serial numbers and thus evaded the duty. They did not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 96 to Dec 96 for the overlap should go to the assessee and the demand has to be thus reworked out. The Tribunal remitted the matter back for the said purpose and also held that in view of findings the penalty has to be re-determined and the question of valuation was kept opened. The adjudicating authority vide order dt.23.11.2005 confirmed demand of ₹ 17,87,850/- on the excess and unaccounted production of CRSS of 0.1mm thereby reducing it from 19,95,483/- and also confirmed demand of ₹ 10,46,274/- on the clearances made as per corrected challans and two set of invoices thereby reducing it from 17,03,031/-. He however dropped the demand of ₹ 26,42,941/- which was made on the basis of undervaluation of goods. A penalty of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the order of Hon ble Apex Court in case of NIRLON LTD. Vs. CCE, MUMBAI 2015 (302) ELT 22 in support of his contention. He further argues on merits and factual aspects to show that there has been no removal of goods without payment of duty and no discrepancy in issuance of invoice and maintenance of records. He also submitted the quantification of clearance and reworking of demand. 4. Shri A.B. Kulgod , Assistant Commissioner (AR) appearing for the Revenue submits that M/s VML did not produce any new facts or records evidencing overlapping of demand and hence the demands are correct. As regard revenue s appeals he submits that the adjudicating authority while re-working the duty demand has not taken into consideration the 19 number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slip quantities RG 1 entries not showing the same quantity. The Appellants claim that the goods become fully manufactured after slitting, coil forming and final quality control test is performed and then entered into RG 1. There is no difference in the production records and RG-1 entry during the period March 96 to September 96 and prior to October 1996. They were using B U rolling machine whole in October 1996, they have started Davy Rolling machine which resulted in mismatch between the excess production of this machine and slitting and coil forming machine. The Commissioner has considered this submission and concluded. I find that the above contention of M/s VML is without grounds. For moment, it is assumed that the above consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val of set on invoices. The charge of unaccounted production and its clandestine removal is thus established. c) The plea made by the Learned Advocate, of part (I) of Show Cause Notice seeking to demand duty of ₹ 17,03,031/- in respect of Clandestine removal during December 1994 to December 1996 and ₹ 24,42,941/- on unaccounted production and removal as per Part (II) during the period October 1996 to March 1997 shows an overlap. Whatever has been unrecorded production has to be unaccounted clearance. The benefit for the period October 1996 to December 1996 for the overlap has to go to the assessee. For the purpose, the demands will have to be reworked out. The matter is required to be remitted for that. d) Since the total ..... X X X X Extracts X X X X X X X X Extracts X X X X
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