RAJASTHAN PETRO SYNTHETICS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal has been directed by the appellants against the Order -in -Appeal dated 13.2.2001 vide which the Commissioner (Appeals) has affirmed the order -in -original of the Additional Commissioner confirming duty demand of Rs. 18,47,443 for the period April 1992 to January 1993 with equal amount of penalty.

(2.) THE appellants are engaged in the manufacture of PPMF yarn falling under Chapter 54 of the CETA. On 6.1.93, their factory premises was visited by the officers of the Central Excise and carried out checking of the record relating to raw material, production and clearance. On scrutiny of the record, it revealed that they had shown unusual generation of waste during the manufacture of the said yarn since 8.12.92 onwards, although the raw material consumed and the finished yarn production matched the average of the preceding period. In order to ascertain the true position, the officers again visited the factory of the appellants on 23.1.93 and resumed one log book maintained by the shift engineers. The entries in that log book regarding the waste did not tally with the entries in the statutory record (RG -1). It appeared to the officers that the appellants had removed 55353.5 kgs. of yarn without payment of duty in the garb of waste. 46 boxes of yarn were also found unaccounted while 32 boxes of yarn were found short in the stock. After completion of the investigation, the appellants were served with a show cause notice vide which the duty demand was raised in respect of yaran removed in a dandestine manner, removal for testing and found short. Show cause notice was also served on the Deputy General Manager and other employees for imposition of penalty under Rule 209A of the Rules. After getting the reply, the adjudicating authority confirmed the duty demand and imposed penalty on the appellants as well as other notices named in the show cause notice (not party in the present appeal). That order has been confirmed by the Commissioner (Appeals).

(3.) WE have heard both sides. So far as the duty liability of Rs. 7020 in respect of 216 kgs. of yarn removed for testing and Rs. 26,660 in respect of 820.32 kgs. of yarn round short is concerned, the same has not been contested before us by the Counsel Therefore, the impugned order confirming both these demands is upheld outrightly.