TMI Blog1998 (8) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... in the clandestine removal of Cigarettes. A Team of Officers visited the premises of M/s. Kabra Enterprises, Bhilai engaged in purchase and sale of Cigarettes manufactured by M/s. M.P. Tobacco Company Limited. On stock verification of cigarettes in the godown of M/s. Kabra Enterprises, it was noticed that 110 C.F.Cs. of Esquire Filter Cigarettes manufactured by M/s. M.P. Tobacco Company Limited as per Sl. Nos. 9701 to 9750 and 11741 to 11800 were lying in the godown of M/s. Kabra Enterprises. On examination of the said C.F.Cs. and Cigarette Packets contained in them, it was found that C.F.Cs packets, slides and outers, each containing 25 packets of cigarettes have the name of manufacturer as M/s. M.P. Tobacco Company Limited printed on them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industries Limited, Durg by Truck No. 09-D-5493 on 11-10-1994 and that M/s. GTC Industries Limited, Durg subsequently cleared the same goods by the same truck and on the same day to M/s. Jyoti Super Sales, Rampur (UP) leaving no stock of Esquire Filter Cigarettes. It was also observed that M/s. M.P. Tobacco Company Limited cleared C.F.Cs. Sl. Nos. 9719 to 9793 to M/s. GTC Industries Limited, Durg and subsequently M/s. GTC Industries Limited, Durg cleared the same goods the same day to M/s. Delhi Marketing Company, New Delhi. Similarly, M/s. M.P. Tobacco Company Limited cleared Esquire Filter Cigarettes contained C.F.Cs. Sl. Nos. 11694 to 11843 to M/s. GTC Industries Limited, Durg who subsequently cleared the same cigarettes on the same day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ahu, incharge of M/s. GTC Industries Ltd. s Godown at Durg had exchanged the C.F.Cs. twice immediately after their receipt on the verbal request of Shri B.L. Kabra; that total stock of cigarettes at M/s. Kabra Enterprises agreed with the book balance; that there was no record of exchange of C.F.Cs. as it was not required under Central Excise Rules. 6. M/s. GTC Industries Ltd., inter alia, argued that they had not maintained any account of S.L. Nos. of C.F.Cs. received, sold and in stock as they had not attached any importance to it; that it was a normal business transaction; that the total balance of cigarettes tallied with the book stock; that on the verbal request of Shri B.L. Kabra, they exchanged old stock of cigarettes with fresh sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the verification of stock; that the General Manager was not liable individually for the act of manufacturer or employee; that no evidence has been brought on record or adduced in the Show Cause Notice to show or suggest that the Appellant had knowledge about alleged clandestine removal or that this has been done with his participation. 9. Shri Paramanand Sahu, incharge of the godown of M/s. GTC Industries Ltd., Durg had not replied separately, but adopted the arguments as above. After careful consideration of the submissions made, the ld. Commissioner of Central Excise ordered confiscation of 110 C.F.Cs., but allowed them to be redeemed on payment of a fine of Rs. 1.00 Lakh. He also confirmed duty amounting to Rs. 4,88,400/- leviable on 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the old stock of a particular item by a new stock cleared from the factory of M/s. M.P. Tobacco Company Limited by M/s. GTC Industries Limited. He submitted that the Department has not produced any evidence on record to prove that there was clandestine manufacture and duplicate removal of cigarettes without payment of duty. He submitted that there was no discrepancy found in the stocks in the premises of M/s. Kabra Enterprises or in the premises of M/s. M.P. Tobacco Company Limited or in the records of M/s. GTC Industries Limited. He submitted that no other evidence has ben brought on record except that some cartons which were cleared during the year 1994 to M/s. GTC Industries Ltd. On payment of duty, some addresses were found in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 24-12-1994 and M/s. GTC Industries Ltd. on the same day sent them to M/s. Ganapathi Traders, Patna. The ld. DR submitted that, thus, the contention of the Appellants that twice they had replaced the Cigarettes is not supported by the facts on record. The C.F.Cs. were found cleared on 3 days i.e. on 11-10-1994, 15-10-1994 and 24-12-1994 and not on two occasions as contended by the Appellants. He submitted that all these cigarettes were cleared during the period before 1st of January, 1995 whereas the cigarettes found were manufactured on or after 1-1-1995 as was evident from the month of packing embossed on the Cigarette Packs. 13. Reiterating the findings in the Order-in-Original, the ld. DR submitted that a case has been made out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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