COMMISSONER, CENTRAL EXCISE, PATNA Vs. UNIVERSAL POLYTHENE INDUSTRIES

JUDGEMENT

(1.) M /s Universal Polythene Industries, Patna manufactures ACSR Squirrel Conductors, The production figures for the year 1989 -90 in RT -12 returns show manufacture of ACSR Squirrel Conductors to the extent of 102.150 kilometers only. However, in the balance -sheet for the year 1989. -90, it was found that M/s Universal Polythene Industries had manufactured ACSR Squirrel Conductors to the extent of 332.150 kilometers. Thus, Universal Polythene Industries, Patna had suppressed production to the tune of 230 kilometers. Similarly, the production of ACSR Squirrel Conductors was shown as 304.630 kilometers in the balance -sheet for the year 1990 -91, whereas in the RT returns for the same period it was shown as 260.370 kilometers. In this way according to the Central Excise Authorities, the manufacturer suppressed the production to the tune of 44.260 kilometers and the duty evaded on these accounts comes to Rs. 2,89,772/ -. In the opinion of the Central Excise Authorities, the removal of the ACSR Squir -re ' Conductors to the extent indicated above is nothing but clandestine removal. The Commissioner, however, observed that in the absence of any corroboratory evidence, the charge of clandestine removal is not fit to be accepted and, accordingly, it dropped the charge. The appeal preferred by Central Excise Authorities against the aforesaid order has also failed, and Customs, Excise and Gold (Control) Appellate Tribunal, Calcutta by order dated 30.6.2000 dismissed the appeal.

(2.) AGGRIEVED by the same, the Commissioner of Central Excise has filed this reference under Section 35 -H of the Central Excise Act, 1944. By order dated 25.22003, this Court directed the Customs, Excise and Gold (Control) Appellate Tribunal to draw up statement of case and reierthe following question of law for detertniration: - "Whether the balance -sheet of a factory prepared by a professional, qualified Chartered Accountant, a ' legally recognized certificate holder vith the Institute of Chartered Accountants in terms of the Company Act on he basis of facts and figures so provded by the respondent can be ignored on irrelevant and arbitrary grounds -

(3.) IN the light of the aforesaid order, the Tribunal had referred the aforesaid question for determination.