TMI Blog2003 (11) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was in excess of the quantity entered in the RG 1 register. The officers compared the total stock of finished textured yarn and that being processed on the machines with the stock of polyester yarn issued from 1-4-1994 till date and concluded that a quantity of 27,757.750 kgs. was in excess of what should have been available as the finished product, taking into account the total quantity of material issued and the finished yarn already cleared. Both these items were seized. After investigation, notice was issued to the appellant proposing confiscation under Rule 173Q(1) of both the quantities of yarn and imposition of penalty. After considering the course of hearing the appellant, the Commissioner passed orders confiscating the goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods have not been entered in the RG 1 register because the staff in the plant had been on strike for two or three days when the officers visited. However we do not find it possible to accept this to be correct. There is no reference to any strike at any stage in any proceedings. When the officers visited the factory, the material was on the machines and being processed. 3. It is further contended that the provisions of Rule 173Q will not apply to this yarn because it was the failure to enter the yarn in the RG 1 register itself would not invoke the provisions of Rule 173Q(1). The decision of the Tribunal in Bhillai Conductors v. CCE - 2000 (125) E.L.T. 781 was cited in support. In this decision, the Tribunal has, by a majority view, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law. Therefore, even if it is held that the provisions of Rule 173Q will not apply, confiscation of the yarn has to be upheld. 4. We now turn to the other issue. The officers, as we have noted, took an account of stock of finished textured yarn lying in the premises, including that on the texturing machines. After considering the total quantity of yarn that was manufactured and cleared and adding to the existing stock of yarn including waste, he found that this quantity was compared with the raw material i.e. untextured yarn that was received and issued for manufacture, there was a quantity of 27,757.750 kgs. the presence of which could not be explained. In other words, by utilising the account of yarn that the appellant had received on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and monitors use of such oil. It is clear that this has not been done. Mandal in one of his statements has said that the Central Stores Department of the mill purchased the oil in bulk and issued it as and when required by Texturing Department and that to produce such records within a week. In fact in his further statement, Mandal says that the appellant had not maintained any inward register for anti-static oil separately and other materials received by its Stores Department which sent the oil to the texturing division for consumption and that before exhausting the stock of anti-static oil, would intimate the stores manager on the telephone for supply of oil. Mandal said that it did not have any more records regarding consumption of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the yarn is worked. If the texturing machines work at a higher speed, they would produce greater quantity of yarn. In any event, it has not been shown that the yarn produced in the different periods were of different denierage or that the machine in the appellant's factory was capable of different speeds. No answer was forthcoming on both these aspects. We therefore do not find it possible to hold that the entire unaccounted production is attributable to the use of the oil. Another factor deserves mention. A large number of products of Chapter 27 were notified under Rule 57A with effect from 1-4-1994. From this date onwards, duty paid on such goods of that chapter could be taken as credit under Rule 57A and to be used towards payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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