TMI Blog1992 (10) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... , dated 20-9-1986, duty demanded was Rs. 32,98,758.90 from the applicants for the allegedly manufacturing tread rubber and clearing the same without payment of duty by under-declaring the value of the same. Earlier he pleaded that the adjudication proceedings could not be completed as the applicants had moved the Hon ble High Court questioning the competence of the then Collector to adjudicate the matter and after a direction had been issued by the Hon ble High Court, the applicants had taken up the matter to the Hon ble Supreme Court. He pleaded that there was change of Collector and the new incumbent wrote a letter to the applicants asking whether in view of the change of the Collector, they would like to get the matter adjudicated. He pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the consumption of sulphur, they made their submissions in this regard vide their letter dated 20-11-1991. He pleaded that after taking into consideration the applicants pleas, the learned Collector adjudicated the matter holding that for the production during 1983-84,1984-85 and 1985-86, the consumption of sulphur by the applicants was 394.800,1438.600 and 2064.000 KGs. respectively and after holding that the consumption of sulphur for manufacture of a given quantity of tread rubber was 3% he has held that during 1983-84 the applicants were eligible for exemption and during 1984-85 they are liable to pay duty on the goods in excess of Rs. 7.5 lakhs amounting to Rs. 80,263.37. He pleaded that the Collector had also accepted their ple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be required to be mentioned. 5. We observe that this is one case where after a wide ranging enquiry including recording of statements from the Managing Partner of the firm and other employees, buyers of the applicants product and also suppliers of raw materials and taking into consideration, the factors like electricity consumption, consumption of raw material like sulphur, a show cause notice was issued demanding duty of over Rs. 32.98 lakhs. The employees of the firm had given information on the working of the Unit including production in their statements, that the applicants Unit was working on two shifts a day and that mixing was done for three days, but extrusion and calendering was done only for two days and one day per wee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the production based on electric consumption, even though the production in the show cause notice was finally worked out based on sulphur consumption does not mean that the other evidence is prima facie not to be considered at all or no reliance could be placed on this for the purpose of demanding duty for the clandestine removal of the tread rubber. The learned lower authority could have gone into this evidence if the evidence of consumption of sulphur was found to be of doubtful nature before arriving at the lower figure compared to the duty which had been demanded in terms of the show cause notice which had been issued by another Collector based on a wide ranging enquiry and evidence gathered. In a case like this the totality of the ev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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