TMI Blog2004 (5) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in the manufacture of Vanaspati (V.P.). During the process of stock verification, it was revealed that, the appellants had stored 2,076 empty tins of 15 kg capacity in the Bonded Store Room (BSR). Hence it was alleged that the appellants had removed 2,076 x 15 = 31.140 MT, of V.P. (the contents of the empty tin) in a clandestine manner involving duty of Rs. 47,745.92, and in the place of tins filled with V.P., the said empty tins were substituted. 2.1 Besides the above evasion, the officers further noticed that daily stock account was written up to 29/30-12-85 and after considering the production of these two days, it was revealed that there was a shortage of 3,532 x 15 kg. = 52.980 MTs of V.P., leading to demand of duty of Rs. 81,23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious manner, then there was no reason for them to stock equivalent number of empty tins in the BSR. It is not the case of the department that the production figures showed the quantity inclusive of 2,076 tins and there was a shortage of 2,076 tins. It is not explained in the order or the show cause notice as to why a manufacturer will try to cover the act of surreptitious removal carried out successfully (if the version of surreptitious removal is to be believed) by lodging equivalent number of empty tins in the BSR. Therefore, I hold that, this part of the demand cannot be sustained, in the absence of independent and corroborative evidence of surreptitious removal. 7.The next allegation relates to clandestine removal of 52.980 MTS of V.P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o that reflected in the RG1 must, as a general rule lead to a conclusion of evasion, in the cases where a mistake in recording the stock is alleged (and such mistakes cannot altogether be ruled out), a second look at the charge of evasion is necessary in the interest of justice. In this case for the reasons I am recording in the succeeding paragraphs, such a second look is necessary. 9.It is noted that production of V.P. was under the control of the State Government authorities in terms of vegetable oils production control order. For the purposes of the requirement of the said act, as well as under the Central Excise Rules, 1944, the appellants had maintained certain records like Tin Container Register and Raw Material Account of vegetabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, on applying the logic of similar disposal, it is alleged that the balance quantity is not accounted for. S.No. Variety of Oil Date of Receipt Quantity MT 1. Expeller Rape Seed Oil 11-12-85 9.850 2. Imported Soya 20-12-85 23.430 3. Tin Oil 24-12-85 13.930 4. Washed Cotton Seed Oil 30-12-85 9.770 5. Imported Soyabeen Oil 30-12-85 24.365 6. Til Oil 30-12-85 13.310 7. Imported Soyabeen Oil 31-12-85 23.620 118.275 12.The allegation of clandestine re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of entries in the private record relating to entry of Trucks to evacuate the products must also be believed. No clarification has been sought from the appellants as to whether they have a system of recording the entry of trucks in the plant. It is not forthcoming from the order or the show cause notice as to what procedure has been followed for entry of Trucks while making licit despatches on 30-12-85, 31-12-85 and 1-1-86. It has come on records that the sector office is located in the factory. If the evasion of this scale was going on, it is difficult to believe that the sector office could not have spotted the to and fro entry of several trucks carrying empty tin containers to be used for clandestine removal. There is no allegation th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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