TMI Blog1998 (10) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... eviable thereon. Penalty of Rupees one lakh was also imposed on the appellant. 2. The impugned order has been passed by the adjudicating authority following the visit of the Central Excise officers to the premises of the appellant situated in the basement at No. 29/2, Industrial Area, Phase 2, Chandigarh where the appellant had kept certain quantity of the goods manufactured by them, namely - self-tapping screws . The quantity was checked by the officers who also recorded the statement of Shri Ravinder Kumar, Managing Director. The officers also visited the factory premises of the appellant and carried out checks of the finished goods as well as raw materials with referred to the relevant records. Certain shortages of raw materials and finished goods were found based on which the allegation was raised against the appellant of having manufactured and removed the excisable goods without payment of duty. After checking of records and recording of statements from the aforesaid Shri Ravinder Kumar as well as others show cause notice was issued alleging that the appellant has removed in the years 1987-88 and 1988-89 self-tapping screws by misdeclaring them as M-screws, Iron Screws, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat appellant had manufactured screws from 13727.500 kgs. of unthreaded screws as reflected in the RT 12 returns for the quarter April, 1988 - June, 1988. This had also not been considered by the Additional Collector. If these are considered, the entire quantity of finished goods found in the outside premises would stand accounted or as also the shortage of finished goods and of raw materials in the factory. 4. On the demand of duty based on the allegation and finding that during the years 1987-88 and 1988-89 appellant had removed self-tapping screws by misdeclaring them as M-Screws, Iron Screws or simply as screws showing less value instead of the correct value based on the rate of Rs. 27 per kilogram, learned Counsel contended that there was no evidence to justify such finding. Appellant had not received any amount from customers in excess of the bill amounts. Similarly he assailed the other finding that in the aforesaid two-year period appellant had cleared more quantities of screws than what had been shown in the clearance documents. There was no misdeclaration of quantity and it is not correct that bills were issued showing only 50% to 70% of the actual quantity supplied. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods found short in the factory or made from the raw materials found short. There is no evidence marshalled by the Department that the quantity of goods arrived at on the basis of the shortages noticed in the factory are not the goods found in the godown but had been removed elsewhere and that the goods actually found in the godown are not relatable to the shortages found in the factory. The quantity found in the godown was 36,600.365 Kilograms while the quantity corresponding to the shortages in the factory has been arrived at as 27663.275 Kilograms. The former being more, the shortages in the factory stand accounted for. We accept the appellant s plea in this regard. The demands of duty of Rs. 70,778.51 (on shortage of finished goods) and Rs. 62,835.09 (on goods held to be manufactured from raw materials found short) is set aside. 7. The demand of duty on the ground that appellant had cleared during the years 1987-88 and 1988-89. Self-tapping screws misdeclaring them as M-Screws, Iron Screws or simply as screws carrying lower price has been contested by pleading that there is no evidence to that effect. The Managing Director of the appellant company, Shri Ravinder Kumar wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his statement in the form of questions and answers. Thus, as mentioned above, the Managing Director had stated that the average rate of Iron Screws, M-Screws and Screws was Rs. 12 per kg. approximately. In Annexures A and B to the show cause notice, the differential duty has been demanded by applying the rate of Rs. 27 per kg. on the total quantity of the Self Tapping Screws cleared as M-Screws, Iron Screws or Screws during the years 1987-88 and 1988-89 as against the values shown in the bills. The plea of the appellant before the adjudicating authority which has been reiterated in the present appeal also is that they were manufacturing screws of several sizes and that they were selling them according to numbers and not by weight. In the few invoices filed along with the appeal the quantities shown are Boxes and Packets. The description is screws. The rate is shown between Rs. 4.70 P to Rs. 38.50 P. The rates vary widely within this range depending upon the type and size. The weight of the screws will vary according to size and the weight cannot be taken as uniform. This plea has been taken by the appellant while challenging the next part of the order relating to the finding of des ..... X X X X Extracts X X X X X X X X Extracts X X X X
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