9911796707
TMI Blog2018 (11) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... also engaged in trading of Rope, Disposable Caps and P.P. Glasses manufactured by others. 2. Their factory was visited by the Central Excise Officers on 29.04.2009, who conducted various checks and verifications. Nothing incriminating was recovered as the stock of the raw material as also the final product was found to be tallying with the recorded balance. Statement of Shri Ritesh Agarwal, Director was recorded wherein he stated that rolled sheets are used for manufacture of P.P Glasses and during production 50% of the same is utilized and remaining is rejected and after grinding the same is converted into rolled sheets. During the course of further investigations statements of various other persons like Foreman, Machine Operator, etc. we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 4-5 carton boxes (containing 4 Kg. each) per hour in normal course. Considering both machines run simultaneously for average 14 hours per day for a year (315 manufacturing days taking into account one weekly off as admitted by the party in the statement dated 29.04.2009), the production comes to 141120 Kg in a year when only 4 carton boxes are manufactured per hour and the production amounts to 176400 Kg every year when 5 carton boxes are manufactured per hour. Since no exact data for production per hour by a machine was submitted, I am forced to take the average of these two production figures as the production of two machines for a year working simultaneously, which comes out as 158760 Kgs. ((141120+176400)/2). The two machines were un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion reported in earlier years and the quantity of electricity consumed, it is very clear that the production as reported by the party no. 1 during 2005-06 to 2008-09 was very much suppressed and therefore escaped the duty liability." 5. As is seen from above, findings of clandestine removal are based upon the calculations, which in turn are based upon the working of machines and consumption of electricity. Such findings which are based upon the consumption of electricity have been held to be as no sustainable for arriving at the findings of clandestine removal. Reference can be made to Tribunal's decision in the case of R.A. Castings Pvt. Ltd. vs. Commissioner reported at 2009 (237) E.L.T. 674 (Tribunal) which stands upheld by the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X
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