L.G. ELECTRONICS INDIA LTD. Vs. CCE

JUDGEMENT

(1.) Heard both sides and perused records.

(2.) There is a duty demand of Rs. 99,419 and penalty of Rs. 15,000. The duty demand is in regard to 13 ACs and 5 Washing machines which have been held to be removed without payment of duty by the appellant.

(3.) The contention of the appellant is that the removals in question took place in the early days of production in their factory. The removals were also for purposes like testing etc. and not on sale. In most cases duty had also been paid. The appellants, therefore, contended that the duty, which remains to be paid, was only in respect of five ACs and that the amount worked out to Rs. 33,263 and that amount was debited by them immediately on being pointed out by the Central Excise authorities. The appellant's contention was not accepted by the lower authorities in regard to ACs cleared under invoice No. 1 dated 27.3.98. This invoice mentions duty paid clearance of two ACs on 27.3.98. The lower authorities have held that this invoice is not valid in respect of the alleged clearances since the appellant's gate register showed a clearance of ACs under serial No. 11. The last column in the register mentions 03 and 04. The Commissioner has therefore held that these relate to clearance of 7 ACs without payment of duty. During the hearing today, learned Counsel for the appellant has pointed out that the conclusion reached by the lower authorities is clearly erroneous. It is being pointed out that the vehicle number indicated in the invoice dated 27.3.98 as well as in the gate register was the same, DL 1CC 1366, and the gate register shows no clearance by that vehicle on 27.3.98 and shows the clearance only on 28.3.98. It is also the contention of the learned Counsel that the clearance referred to in the gate register on 28.3.98 should be accepted as the goods covered by the invoice of the previous day. He also contended that this position is clear from another aspect also. As already noted, the gate register in the last column mentions 03 and 04, the same entries are to be seen in column 2 of the invoice also. According to the learned Counsel, these numbers are the Sl. Nos. of the ACs. He has submitted that the gate register entry relates to serial numbers and not the Nos. of ACs cleared. With regard to the other 5 ACs, the learned Counsel has submitted that though the machine was taken out for demonstration purposes, the dealer has already paid duty.