SOMANI IRON AND STEELS LTD. AND Vs. CCE

JUDGEMENT

(1.) Appellants filed these appeals against the common adjudication order passed by the Commissioner of Central Excise.

(2.) Brief facts of the case are that M/s. Somani Iron and Steels Ltd. are engaged in the manufacture of M.S. Ingots and steel castings. Appellants were also having two sister concerns, viz., M/s. Usha Udyog, Kanpur and M/s. RHL Profiles Ltd., Kanpur having rolling mills. These sister concerns were buying considerable quantity of ingots from M/s. Somani Iron and Steels Ltd. which were used in the manufacture of final products. On 18.1.93, the factory premises of the appellants as well as of their sister concerns, were searched by the revenue authorities. During verification of records, it was found that there was an excess of 325 MTs of M.S. Ingots as compared to their recorded balance in their statutory record. A separate show cause notice was issued to the appellants for this excess quantity.

(3.) During verification of the private records, it was found that from 1.1.93 to 17.1.93, appellants, M/s. Somani Iron and Steels Ltd., recorded the production of 901 MTs of M.S. ingots as against the actual production; of 1622 MTs. On the basis of this shortage, a demand of Rs. 6,63,320 was made.