9911796707
TMI Blog2018 (5) TMI 1446X X X X Extracts X X X X X X X X Extracts X X X X ..... tested and had not reached RG-1 stage, the adverse inference drawn by Revenue is fit to be set aside. So far the alleged shortage of Polyester Chips is concerned, it is admitted fact that the Polyester Chips lying in the silos were not measured. Thus, there is no proper basis for the charge of shortage of Polyester Chips - the charge of shortage is vague and fit to be set aside. Appeal allowed - decided in favor of appellant. - Appeal No. E/2838/2010-EX [SM] - Final Order No. 70917/2018 - Dated:- 24-11-2017 - Hon ble Mr. Anil Choudhary, Member (Judicial) Shri Atul Gupta (Advocate) for Appellant Shri Gyanendra Kumar Tripathi (Asstt. Commr.) AR for Respondent ORDER Per: Anil Choudhary The issue in this appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby they found certain stock of unaccounted Polyester Films (18201.900KG, 176 Rolls), duly packed and kept on wooden pallets in apparently ready to dispatch condition valued at ₹ 19,11,199/- and involving duty of ₹ 3,05,792/-. There was also apparently a shortage of the Polyester Chips. The said stock of Polyester Films were seized vide Panchnama dated 21/09/2001 as it appeared to Revenue that the same was kept ready for clandestine removal. The seized goods were provisionally released on 25th February, 2002 on execution of security bond along with Bank guarantee for ₹ 4,77,800/-. Statement of one Shri Harminder Singh, Senior Manager was recorded during search who could not explain the proper reason for the excess stock o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be absolutely against the prevailing practice of the appellant. Accordingly, appellant was required to show cause with SCN dated 04/03/2002 as to why the seized goods 18,201.900KG of Polyester Film should not be confiscated and further why not penalty be imposed. 5. A second SCN dated 10/09/2002 was issued based on the same investigation alleging that at the time of inspection 194.332MT of Polyester Chips was found short. The show cause notice also records that the representative of the appellant was asked to explain the shortage and they pointed out that the stock of silos has not been taken into consideration as the same is not in a position to be ascertained when the plant is in running condition. Further, the stock of Polyes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und-the-clock in three shifts and the quantity produces and recorded on the basis of production slips, received by the Excise, Executive everyday at about 11.00A.M. and thereafter entered in the RG-1 Register. The goods seized by the officers were not packed as stripping on the same was not done or to be done only after putting the box number on the rolls. These are duly covered by the production slips prepared by the Production Department. Further, the product of the appellant is not a consumer product and it is exclusively used for industrial purposes. Further, the testing of the seized goods was yet to be undertaken, so the stage of accounting of the production of the same had not reached. The seized goods, 18.2MT finished goods, were en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Polyester chips which is only a guess work based on wild estimation as no actual measurement/weighment of the Polyester Chips was done on the date of inspection. There is no measurement sheet available on records annexed to the Panchnama by which the chips were measured. Thus the allegation of the Department of alleged shortage of Polyester Chips also is fit to be dropped. 8. The Additional Commissioner was pleased to confiscate the alleged unaccounted stock of Polyester Film finished goods. So far as Polyester Chips are concern it was observed that on the inspection day the officers had verified stock of chips as 522.608MT, whereas as per stock account, it should have been 716.94MT. During the personal hearing, the appellant was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ama proceedings started at 3.00P.M. Thus, the adverse inference drawn by the Revenue is fit to be set aside. Further, the averment made by the appellant at the time of inspection and subsequently that the Polyester Films are required to be tested only upon being found as A grade, they are entered in the RG-1 record and also fit for dispatch. From the statement of Shri Harminder Singh recorded on the date of search. It is evident that he had stated that the said Polyester Films are yet to be tested and as such had not reached RG-1 stage. I also find that the Panchnama proceedings ended at 3.00A.M. on 21/09/2001. Thus, it is apparent that the statement was recorded in the dead of the night and as such for some minor discrepancy in recording o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
