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2017 (12) TMI 330 - AT - Central ExciseClandestine manufacture and removal - records of wastages - non-recording of actual production figures - Held that: - Though it is indeed surprising why production reports of a kind not relevant for the end product were kept, if 25% wastages were to be generated subsequent to that stage of operation. No professionally managed Company will keep records where there is no wastage, especially of steel coil, and will definitely keep records of & at wastage points to collect the data and steady reason and reduce such wastage - The admission of the officers of the assessee 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 cannot be undertaken at this stage since it involves the detail inspection of the records and documents. Further the modvat aspect for the purpose of quantification has also to be looked into. It is appropriate to remand the case back to the adjudication authority for limited purpose of quantification - appeal allowed by way of remand.
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