TMI Blog2009 (4) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... on physical verification, 11,850 kg of plastic granules totally valued at Rs. 5,33,250/- was found. In addition, a quantity of 11,765 kgs. of plastic agglomerates was found short as compared to the recorded balance. Statement of their authorized representative Shri Yogesh J. Patel was recorded. As Shri Yogesh Patel could not offer any satisfactory explanation for the shortages and excesses so detected by the officers, reasonable belief was entertained that granules were kept for illicit removal and accordingly, the same were seized. 2. Subsequently, statement of Shri Vijaychandran Menon, Director of the company was recorded on 30-8-05, wherein he stated that they were importing plastic granules, plastic scrap and floor sweeping; that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the accumulation of 11 MTs of plastic granules segregated from the said scrap. With regard to the shortage of 11,765 kg of plastic agglomerates detected at the time of recording of panchnama dt. 11-8-05, Shri Vijaychandran Menon stated that this quantity was nothing but the quantity of plastic granules segregated from the plastic scrap imported and if the quantity of plastic granules found in excess was tallied with the shortage of plastic agglomerates, there will only be a marginal difference. On being further asked as to whether they were maintaining any private records for the plastic granules which were segregated from plastic scrap imported, Shri Menon stated that they were not maintaining any private records for the same. 3. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he excess quantity of plastic granules is added in the plastic scrap the shortage stands tallied. (c) There is no further inquiry made or any evidence brought on record to counter or contradict the aforesaid statement. (d) In the Panchnama dt. 11-8-05, there is clear-cut evidence that the physical verification was not done by weighment or by adopting any systematic method. It is noted in the Panchnama that the physical verification of plastic scrap could not he easily done as the same were lying scattered all over the factory premises in loose condition . The stocks of other items, i.e. agglomerates was claimed to have been by eye estimation, i.e. counting the number of bags, and without weighing. (e) For all the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as it is applicable to the finished goods manufactured by the concerned manufacturer. In this connection, following judgments are relied upon : (i) 2004 (170) E.L.T. 443 (T) M/s. Ravi Enterprises v. CCE (ii) 1999 (107) E.L.T. 326 (T) CCE v. M/s. Dincotex Pvt. Ltd. (iii) 2006 (204) E.L.T. 49 (T) M/s. Unimark Remedies Pvt. Ltd. v. CCE. 5. After going through the impugned order, I agree with the learned advocate that confiscation of the excess found raw material cannot be upheld inasmuch as the said raw material was still in the factory premises and the appellants have explained non-entry of the same in the record. Otherwise also, non-recording of the raw material would not invite its co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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