TMI Blog2005 (3) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... consumed in excess of what has been accounted in their registers. There should be evidence for the purchase of other raw materials also. There should also be evidence regarding excess consumption of electricity. Revenue relies on the fact that Shri Kazim Malik has given a confessional statement. The statement does not indicate in so many words that the welding electrodes had not been cleared clandestinely. As per the Order-in-Original, Shri Kazim Ali had admitted that Rutile sand in question was brought into factory and utilised by them. From this a conclusion is drawn to the effect that all the rutile sand have been utilised and there is no wastage, hence the welding electrodes should have been produced as per the formula. In the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en demanded from M/s. Standard Electrodes (P) Ltd. under Section 11A(1) of the Central Excise Act, 1944. The goods valued at Rs. 4,50,055/- seized from M/s. Standard Electrodes (P) Ltd. were held liable to be confiscated under Rule 173Q and Rule 226. A penalty of Rs. 2,00,000/- was imposed on M/s. Standard Electrodes (P) Ltd. under Rule 173Q of the Central Excise Rules, 1944. An amount of Rs. 2,50,000/- (Indian currency) seized from residential premises of Shri Kazim Ali, Managing Director of M/s. Hyderabad Electrodes and Managing Director of Standard Electrodes (P) Ltd. was confiscated absolutely under Section 121 of the Customs Act, 1962. A penalty of Rs. 10,00,000/- was imposed on Shri Kazim Ali under Rule 209 of CER, 1944. The goods val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted seizure of Welding Electrodes and M.S. wire totally valued at Rs. 4,50,055/- from the premises of M/s. SEPL. Cash amounting to Rs. 2,50,000/- was seized from the residence of Shri Kazim Ali. Investigations were conducted with some dealers of the appellants. The Welding Electrodes lying at the premises of the dealers were also seized. A statement of Shri Kazim Ali was recorded on 4-12-1995. He stated that the raw materials required for the manufacture of welding electrodes are M.S. wire, Rutile sand and certain other chemicals. The value of the clearance of M/s. H.E. for the year 1992-93 to 1994-95 were Rs. 45.5 lakhs and Rs. 60 lakhs respectively. The sales of rutile sand are controlled by the Department of Atomic Energy. The appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Feldslar (7) China clay (8) Potasium (9) silicades. The Department has not shown that other raw materials were also purchased in excess for clandestine manufacture and clearance. The department has theoretically determined the (iv) alleged production on the basis of the annual capacity determination certificate. This is without any basis and without any further corroboration. The Department has not let any evidence from any of (v) the buyers to show that the appellants were clearing finished goods without payment of duty. Indian currency of Rs. 2,50,000/- seized from the (vi) premises of Mr. Kazim Ali does not represent the sale proceeds for the goods removed. Hence confiscation of the same under Section 121 of the Customs Act, 1962, is il ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the CESTAT, Bangalore] [2005 (191) E.L.T. 856 (Tribunal)]. (13) Arch Pharmalabs Ltd. v. CCE [Final Order No. 1879/2005, dated 1-12-2004 passed by the CESTAT, Bangalore] [2005 (182) E.L.T. 413 (Tribunal)]. (14) Hilbu Tobaccos Ltd Anr. v. CCE [Final Order Nos. 2038-2039/2004, dated 27-12-2004 passed by the CESTAT, Bangalore] [2005 (183) E.L.T. 378 (Tribunal)]. 4. The learned SDR submitted that the charge of clandestine production and clearance is based on the admission made by Shri Kazim Ali, Managing Director of the appellants Company. He stated that there is no need for further corroboration in respect of the admitted facts. Moreover, the statement has not been retracted. 5. We have gone through the records of the case carefully. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een consumed in excess of what has been accounted in their registers. There should be evidence for the purchase of other raw materials also. There should also be evidence regarding excess consumption of electricity. Revenue relies on the fact that Shri Kazim Malik has given a confessional statement. The statement does not indicate in so many words that the welding electrodes had not been cleared clandestinely. As per the Order-in-Original, Shri Kazim Ali had admitted that Rutile sand in question was brought into factory and utilised by them. From this a conclusion is drawn to the effect that all the rutile sand have been utilised and there is no wastage, hence the welding electrodes should have been produced as per the formula. In the cours ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
