VARDHMAN INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides. The appellant filed this appeal against the order -in -appeal passed by the Commissioner (Appeals).

(2.) BRIEF facts of the case are that the appellants are engaged in the process of heat setting and finishing of cotton and man made fabrics. On 8 -4 -2000, officers of Revenue visited the factory of the appellant and on verification it was found that there was shortage of 199 thans supplied by M/s. Tulsi Cotton Mills (P) Ltd. and there was also an excess of 205 thans which were not entered in their statutory record. It was also found that the appellants were undervaluing their goods for the purpose of payment of duty as they are not adding the value of chemical used in processing in the assessable value of the fabric for the purpose of payment of duty.

(3.) THE contention of the appellant is that on 8 -4 -2000, their partner Shri Kanhaiyalal Jain made a statement to the effect that 205 thans which were not entered in their statutory record also contained 199 tanq supplied by Tulsi Cotton Mills. On the next day, the statement of Director of Tulsi Cotton Mills was recorded and the Director submitted that they have supplied 199 thans to the appellants and the same were not received back. The contention is that as if the overall excess and shortage also taken into consideration, there is only excess of 6 thans. The contention is that revenue calculated the shortage on the ground that the thans supplied by the Tulsi Cotton Mills bearing lot No. 311 and 313 and the thans of this lot No. were not found in the factory. The contention is that it was in respect all the items found in excess, were without any lot number.