9911796707
TMI Blog1998 (2) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... a duty demand of Rs. 1,32,983.26 for clearances made by the appellants during years 1989-90 and 1990-91 allegedly beyond their entitlement under Notification No. 175/86. They were also imposed a penalty of Rs. 50,000/-. 2. The appellants are engaged in the manufacture of rubber beltings classifiable under sub-heading No. 4010.90 of the Central Excise Tariff Act, 1985. They were also availing the exemption under the provisions of Notification No. 175/86-C.E. 2.2 Officers of the Central Excise (Preventive) visited the appellants' factory on 23-1-1991 and after conducting checks and verifications certain vouchers and challans in the names of one Vijay Babu and Vikrant Udyog were resumed and 72 rolls of rubber beltings measuring 6,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of Rs. 1,100/- and was looking after the purchase of raw materials and sale of its goods. Shri Agarwal was operating from the premises of M/s. Winners Rubber Pvt. Ltd. and continued to issue challans pertaining to finished goods of M/s. Triveni Rubbers from the same premises. Apart from Smt. Goel, the appellant company had two other Directors, Shri Pramod Chaudhary and Shri Madan Lal Jaswal. Shri Pramod Chaudhary in his statement dated 24-1-1991 had stated that none of the Directors were concerned with the day to day functioning of M/s. Winners Rubber Pvt. Ltd. and the purchase, production and sale in the company was looked after by Shri Vijay Kumar Goel and Shri Radha Krishan Agarwal. Shri Goel had in his statement dated 24-1-1991 stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port which was found in the appellants' factory. Though the Collector had himself observed that the Project Report was a draft Report, (being not signed by any responsible officer of the appellant company), ld. Advocate pointed that the said Report had still been relied on for computing the quantum of clearances. As regards the value of the fabrics arrived at by the Collector, ld. Advocate contended that the same had been arrived at on the basis of value prevailing during the period June 1990 to January 1991. Since the price of the fabrics was always subject to fluctuation, ld. Advocate submitted that the value of the fabrics have been arrived at on the basis of hypothetical prices. He, therefore, submitted that the norms adopted by the Col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants insofar as the allegation relating to receipt of raw material and clandestine removal of the goods was concerned on the ground that these have not been proved. As regards the duty demand confirmed to the Collector, ld. JDR submitted that verification of records showed a raw material stock worth Rs. 14,72,068 and finished goods worth Rs. 55,227.00 on the date of verification. Further, the production figure was calculated on the basis of the ratio given in the Project Report which was quite a reasonable yardstick to adopt in the circumstances where no other data was shown by the appellants. 7. I have considered the submissions made on both sides and have perused the record. I find that the Collector had dropped the duty dema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial by 1.237735849% as per Project Report (see internal page 33 of impugned order). The appellants had contested the final figure arrived at by the Collector and claimed that the value of finished products was below the exemption limit of Rs. 15 lakhs specified in the notification. They have contested the value of the raw material relied on by the Department on the ground that the price of fabric which was an important raw material (41.44%) was subject to fluctuation. The Collector had relied on the price given by M/s. Maa Textiles for the fabrics supplied for the year 1989-90 for calculating the price of cotton fabrics for the whole year which worked out to Rs. 5,22,301.87. Collector had also calculated the value of rubber compound (inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
