TMI Blog2003 (11) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... riod 12-3-97 to 26-3-97 without physical/actual receipt of the consignments covered under such invoices and has imposed a penalty of equal amount on the assessee company, along with penalty of Rs. 5,50,000/- on Shri Pankaj Desai, the Joint General Manager of the company. The finding is based upon the following :- (i) The non-accountal for the receipt of the 98 consignments of H.R. coils in question in their regular security/stocks registers but only in separate registers viz. Register No. 7. (ii) Out of the number of vehicles stated to have transported the consignments from their Murbad unit to Dombivli, 13 vehicles were tankers, 3 vehicles were four wheeled L.M.Vs having Rear Laden weight capacity of less than 4 M.Tons an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... register and in addition, he maintained another Register for the period 12-3-97 to 26-3-97 and this register showed materials received from Murbad. Shri Pankaj Desai, Joint Manager of M/s. Lloyds stated that their company was engaged in the manufacture of Cold Rolled steel strips for which Hot rolled coil was the raw materials, H.R. coils were procured from M/s. Lloyds Steel Inds. Ltd. and the same were received in Dombivli plant in width from 800 to 1200 mm and were sent directly to cutters i.e. their own Pipe Division at Murbad and other unit in Taloja for further slitting in various widths ranging from 300 mm to 450 mm, Register No. 7 contained details of 98 consignments of H.R. coils, slitted at Murbad which was transported to Dombivli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record that the consignments in question were found elsewhere. Murbad unit was also visited and records verified as to whether coils were slitted and sent to Dombivli and nothing incriminating has been found as seen from the statement of Shri N. Hariharan, Asstt. Manager, Excise of the Murbad plant. Records seized from the Murbad plant have not been relied upon against the appellants. In the above circumstances, we hold that the maintenance of separate register is not sufficient proof of non-receipt of inputs in the appellants factory. Regarding the finding of the Commissioner that the consignments in dispute could not have been transported on the vehicles on which they are stated to have been transported, the appellants explained tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction, except for the invisible loss being less than 1%. This report has been brushed aside by the Commissioner on the ground that the audit was conducted on the basis of records made available to the Auditors and facts of suppression or manipulation were no brought to their notice. We are of the view that Cost Audit Report cannot be discarded on the above grounds, as we find that the scope of the excise audit included enquiry on source of receipt of raw materials, whether there has been suppression on production/clearance, important modus operandi etc. 5. In the light of the above discussions, we hold that the burden of proving non-receipt of inputs on which Modvat credit was availed has not been discharged by the Revenue on whom such b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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