TMI Blog1995 (12) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture electrical switch gears, classifiable under the erstwhile Tariff Item 68 of the Central Excise Tariff. They were selling the goods to DGS D and the Punjab State Electricity Board on rate contract basis. The case against the party by the Department is that during 1981-82 and 82-83, an officer of the DGS D visited the factory premises of the appellants for inspection of the goods covered by the contract. The quantity of the goods presented for inspection was more than the balance shown in the statutory RG 1 register. The Department was of the view that the excess quantity has been clandestinely removed. Another allegation against the appellants is that they removed their own production in the guise of trading goods purportedly p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be construed as evidence straight-away of clandestine removal. The learned Counsultant contended that M/s. Switch Kraft are admittedly an independent company. They are also supplying to the DGS D and during the later period their supply amounted to Rs. 31 lakhs out of which only Rs. 6 lakhs the Department is attributing as removals by the appellants. The situation apparently arose according to the appellants, because of their practice earlier of including even trading goods in their statutory RG 1 register which on further clarification from the Department they had stopped. The learned Consultant further pointed out that the rate of duty applied for computing the demand is not in accordance with the provisions of Rule 9A(5). This R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e carefully considered the submissions of both sides. The charge of irregular maintenance of RG 1 account as regards switch gears is upheld by us by the evidence on record. The plea that the switch gears were offered for inspection even before they were fully finished is not borne out by the statement of the Inspecting Officers who have held that the switch gears were complete and fully finished at the time when they were inspected. The case of the Department that some of the production of Switch Kraft had been removed as their own production by the appellants is probablised by the fact that in some instances, the records show that the goods had been offered for inspection even [in] advance before placement of purchase order with M/s. Switc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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