EMCEE CROWNS Vs. COMMISSIONER OF C. EX., BANGALORE

JUDGEMENT

(1.) THE appellants in -

(2.) IT is submitted that the Industrial Unit is situated at KIADB Industrial Area near Kunigal, which is a backward area. Therefore, it had to function without the minimum required basic amenities. Due to this, no skilled and qualified employees are willing to work, which resulted in a very high labour turnover. The Company had to manage its day -to -day operations with the locally available work force. Therefore, the required skill levels were not met by them. The Companys Registered Office is located at Bangalore and the marketing and administration departments were also accommodated at the Registered Office. The books of accounts including the Central Excise Records were maintained by the production staff at Kunigal under overall guidance of administrative office at Bangalore. In these circumstances, on 20 -7 -98, a consignment of crown closures of torino orange was cleared under Invoice No. 167/20 -7 -98 by the dealing assistant without making debit entries in the PLA or RG 23A Part II and in the RG 1 Registers though the entries were made on the Invoices. This consignment was intercepted by the Central Excise Officers, who on verifying with the factory records, found the same to have been cleared without any debit entries. Hence, they seized the said goods valued at Rs. 1,30,416.00 under a Mahazar. They also immediately undertook the verification of records at the factory and found other entries in the RG 23A Part II in respect of clearances effected under Invoice No. 159 to 166 during July, 1998. The Range Officer of Central Excise was directed to conduct stocktaking. He conducted the stock taking on 21 -7 -98. Based on this investigation, a show cause notice was issued by the Commissioner of Central Excise on 18 -1 -99. Various charges were made and proposals for duty demands, confiscation and penalties were made.

(3.) THE ld. Commissioner after considering the reply of the noticees, relating to the allegations, upheld only the following allegations in the Show Cause Notice : -