9911796707
TMI Blog2001 (1) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... t No. 2) who was present at the time of visit, produced statutory records for inspection. RG-1 register was found written up to 9-5-1995 and opening balance of MS ingots was 134.614 MTs. Stock verification report of ingots resulted in detection of shortage of 8.199 MTs and the shortage involving duty of Rs. 11,966/- was admitted by appellant No. 2. During the course of search, a file containing 14 loose papers, one invoice book partially used and bearing no serial No. and a Production Analysis Report dated 9-5-95 were recovered. Appellant No. 2 gave an explanation about 14 loose sheets - details of the loose papers were explained as under : Page No. 1 - During the period 16-4-1995 to 8-5-1995, 1264.355 MTs of scrap were purchased, a quanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined, was not correct. The Chemist stated that production of 128 MS ingots was recorded for 4 heats during the day and report for 171 ingots for 5 heats was prepared up to the visit of the Central Excise Officers, as per the Production Analysis Report dated 9-5-1995. Appellant No. 2 admitted that invoices out of the invoice book recovered from the almirah in the Accounts Section, had been used for clearance of steel ingots without payment of duty, and that, before issuing the invoices, they used to put Sl. Nos. manually on the relevant invoices. From the above it appeared that the assessee had adopted the modus operandi of suppressing production, clandestine manufacture and removal of ingots after destroying the actual log sheets. Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valid evidence in the eye of law. Further the Director's statement is duly corroborated by independent evidence. The file containing 14 loose written papers was recovered from the drawer of the table of Sh. Harish Kumar, Director. The invoice book which was pre-authenticated by Sh. Sushil Kumar, the other Director and Shri Harish Kumar was recovered from the almirah in the Accounts Section of the factory. Shri Harish Kumar in his statement had explained the details of consumption of raw material, production of finished goods etc. mentioned date-wise in the page No. 1 out of the 14 loose papers recovered from a file found in his drawer. Even if we assume that the documents, viz. log sheets, were planted by the melters as contended by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 0.6 MT trump on 8-5-1995. As per the aforesaid specifications, the installed furnace can melt 55 MT of steel scrap in 19 hours and 38 minutes, the difference of 2 hours and 4 minutes in the two timings being on account of time taken for pouring of molten steel for recharging the furnace crucible for subsequent heat, and other facts. Thus the production as per specifications corroborates the production recorded in the documents recovered from the factory on 10-5-1995, and thus daily production of 507 ingots, each of 100 Kgs, is possible. The authenticity of production recorded in recovered pages is established on the basis of specifications and the independent evidence on record. The timings recorded on page 14 also prove that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t tenable. Shri Gurcharan Singh working as incharge-security admitted that page No. 2 of the documents recovered is the gate outward report dated 9-5-1995 which showed the details of the truck leaving the factory premises. At Sl. Nos. 1, 2, 3, 6 and 7 of this page the details of the truck loaded with steel ingots had been written by him on the basis of yellow colour gate passes which were also shown to him on 19-5-1995. In the follow up action at the V.D Computer Dharamkanda, Mandi, Gobindgarh, as per the records, weighment slip No. 1379, dated 9-5-1995 showed that truck No. PBW-2695 transported goods weighing 15.3 MTs which tallied with the description shown against the Sl. No. 7 of the Gate Outward Report. Another piece of corroborative e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, the Revenue has been able to establish the genuineness and authenticity of the private records. 7.1 In the case of Premier Glass Industries v. Commissioner of Central Excise, Jamshedpur reported in 2000 (123) E.L.T. 703 (T) = 1999 (31) RLT 863, the finding of clandestine removal was based upon loose sheets recovered from the factory of the appellants, the recovery was doubted as no seizure memo or panchnama had been drawn up for the same, the Proprietor of the firm stated in his initial statement itself that the loose sheets recovered were prepared by disgruntled employees. The assessee filed affidavits of two drivers as well as their customers stating that no (sic) had been received by them without payment of duty. In these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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