TMI Blog1997 (8) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... arle Exports Ltd., and discrepancies in figures between those reflected in the RG 1 and in the SMRs were found. The shortage based on the SMR as alleged in the show cause notice were found to be 11,65,884 bottles. Statements were also recorded from the appellant company s officials. The explanation offered by the respondents was that during certain months depending upon the demand in the respondents area and also for the reason of the shut down at certain times, the wholesale distributors purchased the goods from other distributors. These figures are reported to the respondents and which they incorporated in their SMRs. The learned lower authority while adjudicating the case took note of the documents which have been produced before him and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anchise jurisdiction will be reflected in their monthly SMRs : that their (BBPL s) wholesale distributors viz. M/s. Bangalore Marketing Services and M/s. Karnataka Marketing Services etc. also purchased soft drinks from other bottlers of Parle to meet the requirement within their (BBPL s) franchise jurisdiction and these sales made by their wholesale distributors will also reflect in their (BBPL s) SMR. Since they prepare one SMR for the franchise jurisdiction. However upon enquiry with Shri S. Armugaswamy vide summons dated 6-5-1994, regarding details of sales reports by various wholesale distributors, he has expressed his inability to supply the same. In his further statement dated 16-5-1994, Shri S. Armugaswamy has stated inter alia, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not correct as SAMS contribution is based on sales volume and not on production. That yield analysis report (Annexure B-50 to SCN) for April and May 1993, showed that actual production was more than normal yield i.e., 1 unit = 400 crates and at the same time RG1 figure was less than standard yield (Annexure-B-51). Computer sheets were considered for working out difference during period April, 1993 to September, 1993 as SMR s were not available. As the computer sheets were based on sales report as sent by various bottlers of M/s. PEL including District Franchise Manager Shri Dhareshwar, the authenticity of sales figures taken as basis for comparison with statutory records has to be appreciated. Despite repeated summons Shri S. Armugasw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een given as to their admissibility. The demand was based on SMR-1 report read with the said statements. Inter franchise purchases were enquired into in the course of the investigation. The company was asked to provide details of interfranchise purchases but failed to do so. In view of this and in view of statements that the SMR-1 report was based on daily sales report of the factory, the demand was proposed for the whole of the difference between SMR-1 figure and the RG 1 figure. The failure of the company to produce details of inter franchise purchases led to a reasonable inference that there had been no such purchases by this factory and that therefore the daily sales report translated as stated into the SMR-1 figure. However after iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the fact that Production Manager s report does not form the basis of the allegations. To quote nothing prevented the bottlers to furnish the correct figures of production as the report is a confidential one and in other words it is their obligation to furnish the correct figures otherwise the excess/shortages has to be explained as to the standard formula of 400 crates of each per unit of concentrate/essences produced/utilised . In expressing this the adjudicating authority has ignored the evidence in paras 9.4, 10.4 and 10.5 of the show cause notice dated 23-8-1994 wherein the fact of dilution being done by some bottlers is mentioned. Thus, it is possible that while the bottler reported the standard yield in the PMR to Parle the actua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sides. We observes that the learned lower authority in his order while he has approached the issue in the correct perspective, he has not entered into any detailed discussion as to how the total shortages as had been alleged had been accounted for based on the records which has been produced before him. What is required in such cases is that the figure as reflected in the SMR should be tabulated against the figures which are reflected in the RG 1 register and the figures of purchase stated to have been made from other franchise holders and which formed a part of the SMR for a particular month. Thereafter, the ld. lower authority should have arranged for verification for the actual fact of these purchases which were made from the other di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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