New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 12 - CESTAT BANGALORE

2016 (1) TMI 12 - CESTAT BANGALORE - 2015 (325) E.L.T. 914 (Tri. - Bang.) - Clandestine manufacture and clearance of various articles of copper and copper alloys - Finished goods daily stock register (RG-1) was not complete - the officers found copper winding wire scrap lying in gunny bags as also in loose and lump condition in the factory. As the appellant could not explain the source of procurement of the said scrap, which is raw material for the appellant, the same was seized under panchnama .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uality control test about a week ago and in the absence of any admission that the same were not entered with any malafide intention to remove them clandestinely.

Regarding source of scrap - the assessee have produced invoices of two persons showing the sale of the scrap on the previous night of the visit of the officers. No enquiries stand made by the Revenue from the said two suppliers of scrap. If the scrap has been received in the factory on the previous day, late night, it cannot .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the other filed by the Revenue are being disposed of by a common order as they arise out of the same impugned order of Commissioner. 2. The assessee is engaged in the manufacture of various articles of copper and copper alloys such as copper tubes, copper rods, copper strips, copper flats, brass tubes, cupro nickel pipes etc. falling under Chapter 74 of the Central Excise Tariff Act 1985. Their factory was visited by the officers of the Directorate of Central Excise Intelligence on 25.03.2008 a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e extent of 211 kgs were not entered in the daily stock register RG-I. On a reasonable belief that the same were meant for clandestine removal, the officers seized the same. 3. During the course of post seizure investigations, the statements of various persons were recorded. Shri Bhanwar Lal Ramavat Dy General Manager (Production & Tools) in his statement dated 26.03.2008 agreed with the panchnama proceedings and submitted that he was not aware of the source of acquisition of the scrap and t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tement of Smt Tamil Selvi, Central Excise Assistant of Cubex Tubing Ltd was also recorded, wherein, she deposed that she was responsible for making entries of invoices, quantity details, CENVAT credit details etc. in the central excise related records. As she was not given any packing list in respect of the final product, no entries were made in the RG-I. 4. Subsequently vide their letter dated 02.04.08, the appellant submitted that cupro nickel and brass tubes were finally completed at the late .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee. 6. The assessee in their reply to the said show-cause notice submitted that though ad brass tubes and cupro nickel pipes were manufactured a week back, the same were subsequently subjected to eddy current, hydrotest, surface inspection, dimensional inspection, lengths cutting etc. The said goods finally passed the tests on 24.03.2008 and were released for weighment and packing which was completed on the said date at around 22.00 hours. Inasmuch as the officers visited their factory .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

they passed the tests only the previous day cannot be accepted. He accordingly confiscated the ad brass pipes, totally valued at ₹ 60.59 lakhs with an option to the assessee to redeem the same on payment of redemption fine of ₹ 15 lakhs. Similarly copper nickel pipes totally valued at ₹ 8.44 lakhs were confiscated with an option to the assessee to redeem the same on payment of redemption fine of ₹ 2 lakhs. In addition. penalty of ₹ 10 lakhs was imposed upon the appe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ibunal. Revenue is in appeal against that part of the order vide which the adjudicating authority has dropped the proposal to confiscate the scrap. 9. I have heard Shri Y. Sreenivasa Reddy, learned advocate for the assessee and Shri S. Teli, learned A.R. for the Revenue. 10. After appreciating the submissions made by both sides, I find that the adjudicating authority has confiscated the finally manufactured products, which according to the Revenue were not entered in RG-I records. The adjudicati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

required to pass stringent quality control test like eddy current, hydrotest, surface inspection, dimensional inspection, length cuttings etc. The goods manufactured without passing these quality control tests would have been manufactured about a week back but cannot be considered as final product for the purpose of entry in RG-I records. On going through the statements of various persons, I find that there is no reference by any person to the fact of passing the quality control tests only the p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version