TMI Blog2005 (12) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the entire charge rests on the packing slips recovered from the appellants. The appellants undertake job work also. Therefore, the packing slips cannot be a conclusive evidence for the production of goods on behalf of the appellants. No attempt, has been made with regard to the consumption of electricity. A reading of the Order-in-Original, indicate that the OIO has been issued on the basis of the presumptions and assumptions. In order to bring to book duty evaders, Revenue should do thorough investigations. If duty evaders do not leave any trace of their offences, we cannot presume commission of offence and penalise them. Detection of economic offence is verily a battle of wits between Revenue and trade. Adjudicating authority cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per wire. Penal proceedings were initiated against the appellants. Consequent to the proceedings, the adjudicating authority confirmed a total demand of Rs. 62,89,701/-. He confirmed a duty of Rs. 9,54,00/- in respect of super enameled copper being the differential duty arrived at by adopting the value of the goods cleared in the Depot during the year 1994-95 as detailed in Annexure 10 to the show cause notice. He imposed a penalty of Rs. 15,00,000/- under Rule 173Q of Central Excise Rules, 1944 on the appellant. The land building plant and machinery belonging to the Company were confiscated under Rule 173Q. But an option to redeem the same on payment of a fine of Rs. 5,00,000/- was given. A penalty of Rs. 1,00,000/- was imposed on Shri Iqb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held and the Investigating Officer contended as follows :- a. the method adopted by us to quantify the goods which have escaped payment of duty was to take the quantity as shown in the packing slips and compare the figures recorded in the RG I Register. b. I may also add that because of non-availability of input/output norm, we did not estimate or evaluate the production taking into account the production capacity of the Unit. c. Since, the entire estimation of the quantity produced was based on packing slips or wherever production figures were shown in the RG I itself, we did not attempt to estimate the likely production on the basis of any raw material consumed. d. We have not made any verification with any buyer to whom these goods coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial, evidence of purchase of unaccounted goods by buyers etc., normally establish clandestine production and removal. In this case, the entire charge rests on the packing slips recovered from the appellants. The appellants undertake job work also. Therefore, the packing slips cannot be a conclusive evidence for the production of goods on behalf of the appellants. No attempt, has been made with regard to the consumption of electricity. Paras 23 and 24 of the Order-in-Original are reproduced. The arguments advanced by the Noticee Company that, no investigation has been made to cross-verify with the buyers of the goods, or the production based on the amount of electricity consumed, again are not acceptable. It is found that the factory had, ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l production. 8. A reading of the above paras indicate that the OIO has been issued on the basis of the presumptions and assumptions. In order to bring to book duty evaders, Revenue should do thorough investigations. If duty evaders do not leave any trace of their offences, we cannot presume commission of offence and penalise them. Detection of economic offence is verily a battle of wits between Revenue and trade. Adjudicating authority cannot come to the rescue of Department Officers who abdicate their responsibility. It appears as though the adjudicating authority justifies the poor investigation by the Departmental Officers. Even in respect of the confirmation of differential duty of Rs. 9,54,108/- on super enameled copper wires, there i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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