TMI Blog2011 (7) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... same was hurriedly changed to 84316 - Shri Deepak Srivastava, Excise Clerk in his statement recorded under Section 14 of the Act has clearly stated that the figure 8 was added before the figure 4316 immediately after the officers visit to the respondent s factory and this was done on the instruction of Shri M.P.Agarwal, Managing Director of the respondent company who promised to send the production s slips to justify that much production on 17.08.98 - Therefore, hold that the Commissioner (Appeals) s findings that there was no excess stock in RG-I Register and there was no contravention of the Rule 53 of the Central Excise Rules, 1944 is not correct - Decided against the assessee. - E/1134 of 2005-EX (BR) - - - Dated:- 25-7-2011 - Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondent company for shortage was not found to be satisfactory, the central excise officers were of the view that this much quantity of the fabrics had been removed after processing in a clandestine manner without payment of duty. The duty involved on this quantity was Rs.2,30,670/- and the duty involved on the processed fabrics made out of 2489 sq.mtrs. of grey fabrics found short was Rs.8960/-. 1.3 The officers also checked the stock of finished goods and it was found that there was 131719.30 sq.mtrs. of polyester viscose shirting but the stock as per the RG-1 Register was 84316 sq.mtrs. of polyester viscose shirting. However, on close scrutiny of the records, it was found that production of 84,316 sq. mtrs. of P.V. Shirting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e RG-I register. The officers, therefore, seized the excess stock on the reasonable belief that the same would be liable for confiscation under the provision of Central Excise Rules. 1.4 In view of the above facts, a show cause notice dated 20.01.99 was issued to the respondent for (a) duty demand of Rs.2,30,670/- in respect of shortage of 6475 sq.mtrs of grey fabrics along with interest at the applicable rate under Section 11 AB; (b) demand of duty amounting to Rs.8960.40 in respect of shortage of 2489 sq.mtrs. of man made fabrics along with interest on it under Section 11 AB; (c) confiscation of 1,22,403/- sq.mtrs. of excess PV Shirting valued Rs.22,93, 259/- and (d) imposition of penaty on the appellant under Rule 173 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side of the confiscation of the seized goods by reiterating the grounds of the appeal in the Revenue s appeal and emphasised that at the time of officer s visit to the factory, the quantity recorded in the RG-I Register was only 4316, that Shri Deepak Srivastava, Excise Clerk of the respondent company in his statement dated 18.08.1998 has clearly admitted that the figure 8 was added before the figure of 4316 in the RG-I Register immediately after the officer s visit to the factory on the instructions of Shri M.P. Agarwal, Managing Director, that Shri Deepak Srivastava has also admitted that on 17.08.98 the actual production of PV Shirting was 4316 only and in this regard, he had produced the production slips also, while on the instructions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the same and it is not material as to whether initially the figure of 4316 had been written and figure 8 was added before the figure 4316 later on and that in view of this, there is no infirmity in the impugned order. 3. We have carefully considered the submissions from both the sides and perused the records. The dispute pertains to August, 1998 when Central Excise Rules, 1944 were in force. In terms of the provisions of Rule 53 of the Central Excise Rules, 1944, every manufacturer shall maintain a stock account of the goods manufactured by him in a prescribed format. The format prescribed for maintaining the stock account of the finished goods manufactured is RG-I Register, in which the opening balance for the day, quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 sq. mtrs. of PV Shirting. The Commissioner (Appeals) has held that stock of 47,403.30 sq.mtrs. of PV Shirting wrapped in polythene should not be treated as finished goods and if it is not counted as finished goods, the stock available would be 84316 sq.mtrs and this is what had been recorded in the RG-I Register and it is not material that the figure of 8 before the figure of 4316 was added immediately after the officers visit to the respondent s factory. 4. What is punishable under Rule 173Q(1)(b) is non-accountal of the finished goods in the RG-I Register and if such non-accountal of the finished goods was there, to the extent the finished goods were unaccounted, the same would be liable for confiscation and the respondent would be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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