TMI Blog1989 (12) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... of matches was being carried on in these three units and there was no stock of essential raw materials like Chlorate, Sulphur, red-phosphorus, etc. nor the Central Excise statutory accounts were available in the premises. The authorities also found that there was no stock of any residuary chemical composition of match heads. The explanation given by the appellants was that the raw materials and accounts books were kept in the godown of M/s. Manohara Match Works, referred to as the main factory, and in their office (Manohara Match Works). The lower authorities charged the appellants that all the factories were working as one unit and that they were liable to pay higher rate of duty i.e., instead of Rs. 1.60 per gross Rs. 3.50/4.50 per gross. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re kept and in whose office the appellants records were kept. He pleaded that there was no finding by the lower authority as to where the matches had been manufactured and by whom and merely on a presumption it has been held that all the three units were getting their matches manufactured together and no evidence has been brought on record regarding the place where matches were manufactured. He particularly pointed out that the proprietor of M/s. Manohara Match Works, where all the records were kept as also the raw materials, has not even been questioned and no charges have been made against him. He pleaded merely on presumption or suspicion the appellants cannot be found fault with. 4. The learned JDR for the Department stated that whil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstance of absence of evidence of dipping etc. in the units and also stocking of the raw materials and the records in the unit M/s. Manohara Match Works is a suspicious circumstance. This circumstance certainly warranted indepth probing by the authorities to unravel the nature of operations that were being carried out. The authorities, however, it appears, remained content with having brought on record the fact of the absence of dipping of the matches etc. and did not pursue the matter further to get the facts as to the nature of the operations which were being carried on a regular basis in the 3 units. They have been even remiss in not recording a statement from the proprietor of M/s. Manohara Match Works, who was in the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants inspite of close excise supervision got away with the removal of matches by paying lower rate of duty. The learned lower authority has not even adverted to the records of purchase and utilisation of raw materials and also whether on check of the same by the Central Excise authorities at any time during the past 3 years any discrepancy in regard to the same had been found and also whether there was any instance reported when the appellants were not found to have been manufacturing the matches as required under the law in their units for the purpose of clearance of matches at lower rate of duty. We further observe that no records or any accounts book showing that the appellants had been paying for the finished match sticks to an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound the absence of the dipping of the chemical mixture etc. and the signs thereof. The appellants before the lower authority had pleaded that the dippings were done in the units and dipping plates were clean because they had cleaned them after the day s work. The learned lower authority, however, has taken the nature of the manufacturing operations being carried out on the day of the visit by the officers along with the circumstance that the appellants were related to the proprietor of M/s. Manohara Match Works in whose premises the raw materials and records had been kept and, therefore, concluded that for the past 3 years the appellants had not been manufacturing any matches and had been doing the work of only box filling and not actually ..... X X X X Extracts X X X X X X X X Extracts X X X X
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