TMI Blog2006 (3) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... e maintaining a register for sale of velvet fabrics for the year 1993-94. The register is numbered at serial No. 93 in the list of the seized documents. The register was containing month-wise and date-wise sales of flock fabrics to the customers. It was found that many bill numbers were repeated several times in respect of some of the customers. During investigation, it was found that entries in register appearing at serial No. 93 of the list of seized documents were tallying with another computer generated report maintained by the respondents which was in the form of print-out on the computer as DISP report from 1-4-93 to 31-3-94. After scrutiny of the documents, it was found that the duty of Rs.1,08,00,122/- as detailed in Annexure-C-I to the show cause notice for the years1993-94 and 1994-95 leviable on the goods removed clandestinely was not paid by the respondents. Therefore, show cause notice was issued to them along with directors of M/s. Rishabh Velveleen Pvt. Ltd., its Accounts Officer and its customers M/s. Girdhar Company, M/s. Pearls Marketing Company and M/s. K.M. Enterprises. M/s. Rishabh Velveleen Pvt. Ltd. were charged for contraventions of provisions of Rules 9(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are any evidence corroborating the entries contained therein. He found that there is no corroborative evidence to support the entries contained in the said private register No. 93 inasmuch as not a single bill has been located from the said RVPL corresponding to any or some or all these listed sales or as supportive of them; no GRs/RRs corresponding to these entries have been located/seized either from the RVPL or from the buyer mentioned in the entries or from the transport Co./Railway authorities; there has been no detection of any unaccounted sales or unaccounted goods from any of the buyers appearing in the said private register. He, therefore, came to the conclusion that private register No. 93 was nothing but a figmentation, built/fabricated for the sale purpose of giving a rosy picture to the financial institutions/banks and thus, no reliance was placed on it by him. 4. Regarding suppression of production and its clandestine removal without payment of duty by the respondents, the Commissioner has observed that he has critically gone through the process of manufacture of fabrics and a flow chart in this respect filed by the respondents. In view of this, the contentions put ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise, Meerut to apply to the Customs, Excise and Gold (Control) appellate Tribunal for correct determination of the points arising out of the said order. Accordingly, the appeal was filed by the Revenue before this Tribunal. 6. On behalf of the Revenue, it was argued that the order of the Commissioner is perverse and is contrary to the evidence on record. The register mentioned at serial No. 93 of the seized documents (hereinafter referred as to register No. 93) is a private register of sales of the goods maintained by the respondents. This register was maintained by Shri Vikas Kumar Singh in his own handwriting on the direction of Shri U.C. Jain, director of RVPL. Even Shri U.C. Jain has signed that register and has made entries of receipt of payment in the said register. The entries made in this register are clearly corroborated by the railway receipts for the year 1993-94. Out of the 70 railway receipts for 1993-94 seized by the Investigating Officer, it was found that goods books under these railway receipts were entered in register No. 93. Out of these 70 entries in Register No.93 entries in the RG-1 register only for 25 railway receipts. Similarly, out of 65 Good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and register No. 93 which has been prepared by Shri Vikas Kumar Singh on the direction of Shri U.C. Jain and when the entries of dispatch of goods by the railway and goods transport company which has not been included in the RG-1, were found in the said register, therefore, its authenticity and corroboration has to be accepted for demanding duty. The Commissioner was totally wrong in stating that no corroborative evidence was there and this register is a figment of imagination. 7. It was further argued that the respondents had given same invoice number for more than one clearance and different quantities were shown in the invoices. These parallel invoices are entered in register No. 93 and the recovery of such invoices further corroborates the entries made in register No.93. 8. Shri S.K. Maheshwari, Field Officer of S.B.I., in his statement, has clearly stated that register No. 93 was never shown to the bankers. Loan was given to the respondents after verification of the goods. Thus, claim of the respondents that this register No. 93 was being maintained for showing it to the banks and financial institutions as held by the Commissioner in his order is to tally incorrect as this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that DISP reports for the year 1993-94 prepared by Shri Rajinder Singh, computer operator of the respondent's corroborated entries in register No. 93 for the year 1993-94. The computer operator has prepared DISP reports from independent documents like material receipt register, dispatch register, vouchers etc. We also find that Shri Vikas Kumar Singh in his statement dated 24-5-94 has clearly admitted that t prepared this register as per direction of Shri U.C. Jam and used to write the description, name of the party, Challan number, and payment etc. based on the sales effected on the particular date. The payment details were also entered based on the payments made by the respective parties on their sales. We also find that authenticity of this register is not in dispute as Shri U.C. Jain, in his statement dated 24-5-94, has accepted that register No. 93 has been fabricated to show to t banks. In the said statement, he has stated that, "I have seen this register and I have put up my dated signature on first and last page. The heading of this register are S. No., date, P/I, Bill No., party code, party name, description, amount, receipt amount, mode, remarks. I have seen Page N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respected goods on the ground that after provisional release, the goods were cleared on payment of duty and no specific allegation relating to them has been made out in the show cause notice. We find that this finding of the Commissioner is also incorrect. In the show cause notice, there is clear charge that 9095.10 mtrs. of velveleen flock fabrics valued at Rs. 1,57,267.50 seized at their factory uses at Jawalapur, Hardwar should not be confiscated under Rule 173Q of the Central Excise Rules, 1944. The values of the seized goods have not been challenged before us. The panchnama dated 6-5-94 recorded for the search of the premises of M/s. Rishabh Velveleen Pvt. Ltd., 9th K.M. Stone, Deihi-Haridwar Road, Ranipur Barrier, Jawalapur, Hardwar, shows that the officers also conducted physical stock taking of finished goods in the presence of Shri Vikas Kumar Singh. The physical stock taking of the finished goods resulted in recovery of excess quantity of flock fabrics than that recorded in their RG-1 register, tails of which are mentioned in Annexure-B to this Panchnama. On being ked by the officers, Shri Vikas Kumar Singh stated that the goods were of sec 1 grade and were not accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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