TMI Blog1998 (1) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... weighing 4,293 Kgs. from M/s. Sandek India (P) Ltd. but it was not accounted in any statutory Central Excise record and in raw material register in Form IV and the material was issued for production of laminated sheets without issuing any issue slips and without accounting for it. The officers found that the appellant had manufactured laminated sheets therefrom and cleared the same clandestinely without payment of duty. The duty involved comes to Rs. 6,83,294.44. Statements were recorded from Shri B.M. Patel, the Excise Clerk and Power of Attorney holder of the appellant and from Shri J.T. Patel, Director of the Appellant. Shri J.T. Patel in the statement dated 27-7-1989 gave a detailed explanation in which he also gave a formula for the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in arriving at the quantity produced has not given full consideration to the types of waste that arose but has considered only the trimmings as waste. The ld. Counsel referred to the calculation chart at Annexure F in the appeal papers which brings out the fact that if the details of use of barrier papers is considered for base paper there will be no difference for demand for duty. It was also pointed out that the appellants are accounting for barrier paper in the Modvat account RG 23A as base paper. There is also no direct evidence of clandestine removal in this case. The ld. Counsel relied upon case law of the Tribunal reported in 1995 (76) E.L.T. 197 in which similar circumstances had been considered and it has been stressed by the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial. Shri B.A. Patel another Director of the appellant in his statement explained that in respect of goods received under cover of invoices only without gate passes they have not accounted for them but the payment for the base paper was made by cheque. Thereafter they were issued for production. In the statement of J.T. Patel, Director, there is a detailed explanation wherein he also mentioned that only two consignment out of the five have been accounted for in their statutory Central Excise record. But the other three consignments were entered in their ledger. He also mentioned in the statement that it was a practice to utilise barrier paper when the base paper was of very thin quality and of indigenous make, but accepted that he had no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y entered in the account in the raw material register and that the resultant production of laminated sheets also been duly accounted for. In the face of such a finding of the Commissioner, we are of the view that the Department s case relating to clandestine removal of the goods in question has not been satisfactorily established by sufficient evidence. In any case there are sufficient circumstances in the case to extend the benefit of doubt to the appellant. Therefore on this ground we set aside the duty demand. However, in respect of the penalty on the appellant even according to their own admission there has been non-accountal of the material in their raw material register for which a part of the penalty is to be maintained. Therefore we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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