1980 (4) TMI 113

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..... action by subsequent scaling down of the stock balance till the entire excess originally shown got adjusted. In the joint stock taking conducted at the petitioners mills by the petitioners and the Department on 1-10-1969, the overall shortage of 32,000 metres noticed was accepted as properly accounted for and the stock balance was accordingly allowed to be written down to that extent with the approval of the competent authorities of excise. 2.1 Government observe that the discrepancy in the position as on 30-8-1969, had existed earlier also and inasmuch as the petitioners were working under full physical control up to 31-7-1969, when all their clearances were erected under official supervision, there is sufficient force in their argument .....

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..... that those entered in the account books and those shown in the returns submitted by the assessee to the Textile Commissioner alone are to be taken as the basis. In the circumstances of the case we do not see any error in the order of the Tribunal. The Tribunal is justified in accepting the books as correct because the entries therein tallied with the returns submitted by the assessee to the Textile Commissioner and ignoring the stock declarations made by the assessee to the banks." On the same reasoning the petitioners have in the instant case contended that the statutory records maintained for excise purposes should be believed instead of the statement submitted to the Bank. It was also pleaded that the latter figures were inflated with .....

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..... t Act, 1944, and more particularly having regard to the words used in sub-section (1) as also sub-section (2) it is clear to us the expression "other legal proceedings" has to be confined to proceedings in a Court of law and would not embrace within its scope proceedings taken by departmental authorities for quantification and recovery of the amount of excise duty in the manner provided under the Act and the Rules." Equally, relevant is the observation of the Madras High Court (DB) in the case of Superintendent of Central Excise, Satna v. A. Loganathan (WP No. 134/1974, decided on 16-7-1975), where the Hon'ble Court over-ruling the decision of the single Judge held — "In our opinion, an assessment proceedings started with a show cause n .....

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