9911796707
TMI Blog2005 (5) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... said firm. 2. The appellants M/s. Shree Extrusions Ltd., is engaged in the manufacture of brass rods, wire, profile etc., falling under Chapter 74 of the Central Excise Act. The appellant's factory was visited by the Central Excise officers on 27-3-99 when 17,943 Kgs of billets were seized by the Central Excise Officers and were handed over to the appellants under Supratnama. The present proceedings does not relate to the said seizure. However, subsequently the appellant's factory was again visited on 4-7-2000 and various checks were conducted. On physical verification, stock of the finished products lying in the factory compared with RG-1 register was found to be correct. However, it was observed that 27,190.500 Kgs. of billets, which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate, appearing for the appellants and Shri U.H. Jadhav, ld. DR. for the Revenue. 4. It has been strongly contended that immediately after the visit of the officer and detection of the shortages, a protest was filed before the Commissioner of Central Excise vide their letter dated 8-7-2000, detailing therein that the stock of billets lying on the floor of the factory was not taken into account, which has resulted in shortage of the billets. Statement of Shri Kadecha was also retracted by submitting that the same was recorded under duress. Ld. Advocate has also submitted that a case of clandestine removal cannot be established on the sole ground of shortage of raw materials or intermediate goods or on the basis of statements. Drawing my ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kadecha in his statement given on the spot has very clearly agreed that the quantity of billets seized on 27-3-99 and handed over to them have already been consumed in their factory for manufacture of excisable finished goods for which no entry was made in RG-1 register. The goods having been handed over to the appellants after the seizure, they were under a legal obligation to produce the same as and when called for by the department. Non availability of the said goods on the date of subsequent visit of the officers in the factory, read along with the statement of their authorised representative fully establishes that the goods have been consumed by them for manufacture of the final products. The appellants have also not been able to prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplies in the present case. It is not only the shortage of the raw materials but the appellant's protest to the Commissioner immediately after the visit of the officer that the cut billets and the under process billets have not been taken into account which help me to take a view that there was no actual shortage of billets and the same was pseudo. There is no other evidence on record produced by the Revenue to show that the billets are being used in the manufacture of final products cleared clandestinely. In these circumstances I extend the benefit of doubt to the appellants in respect of the balance quantity of billets found short. 8. In view of the facts and circumstances of the case, penalty upon the firm is reduced to Rs. 2 lakhs. Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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