ADITYA STEEL INDUSTRIES Vs. COMMR. OF CENTRAL EXCISE

JUDGEMENT

(1.) THE above appeals have been filed for setting aside the order of demand of duty and confiscation of truck and the goods and also levy of penalty, on the respective appellants. The matter was posted for hearing on. 30 -1 -1996 and at the request of the Counsel for the appellants, the matter was adjourned to 9 -2 -1996. Again adjournment was sought for on the ground that the Counsel is away. None is present for the hearing today. Inasmuch as the matter has been adjourned once at the request of the Counsel for the appellants, no further adjournment is granted and the appeals are taken up for disposal on merits based on the records available.

(2.) BRIEF facts of the case are that the officers of the Central Excise intercepted a truck late in the evening on 27 -6 -1993. On checking the gate pass the officers found that the time of removal of the goods mentioned therein was 9.25 AM and since there was inordinate delay in transporting the goods the truck was intercepted and the driver was questioned. He informed that he earlier carried another consignment of 135 ingots from Aditya to M/s. Pioneer Re -rolling Mills and the supervisor of Aditya Steel Industries advised him to avoid making entries at the Check post as the same set of papers were to be used for despatch of another consignment and when he reached M/s. Pioneer Steel Re -rolling Mills, 35 ingots were found defective and were returned and he carried the same back to M/s. Aditya Steel Industries from where another load of 135 ingots was carried in his truck which was intercepted by the officers. As a follow -up action the officers searched the premises of both M/s. Aditya Steel Industries and the Pioneer Steel Re -rolling Mills and recorded statements from Raghuvir Singh Supervisor of Aditya Steel Industries, Lakhi Prasad, Manager of Aditya,. M. Gupta, Managing Partner of Aditya, M.G. Murtaza, Managing Partner of M/s. Pioneer Steel Re -rolling Mills. It is in these circumstances proceedings were initiated against the appellants which resulted in the impugned order under which duty of Rs. 20,260/ - has been demanded from appellants Aditya Steel Industries, confiscation of 10.090 MTs of M.S. Ingots with option to redeem the same on payment of fine of Rs. 20,000/ - to be adjusted from the security deposit. The learned lower authority has also confiscated the truck and allowed the same to be redeemed on payment of fine of Rs. 8,000/ - to be adjusted from the security deposit, besides penalty of Rs. 2,500/~ on Aditya Steel Industries under various provisions of Central Excise Rules, 1944, Rs. 2000/ - on M/s. Pioneer Steel Re -rolling Mills and Rs. 1000/ - each on driver Mohd. Ikram, Lakhi Prasad. and R. Singh. Mohd. Ikram in his statement before the authorities given on 27 -6 -1993 has stated as under: 4. Shri Mohd Ikram, Truck Driver, in his statement dated 27 -6 -1993 deposed that in the morning at 8.00 Hrs. he started with the vehicle bearing Registration No. AP 10T 1976 from Musheerabad and reached the factory premises of Aditya by 9.00 Hrs; that at Aditya 135 pieces of M.S. Ingots were loaded in the vehicle at 9.30 Hrs; that the factory Supervisor handed over the documents and informed him not to make entry at Commercial Tax Check Post as the same papers were to be used to despatch another consignment; that he avoided the Check Post and took different route and reached the factory premises of Pioneer; that the Ingots were unloaded and it was found that 35 Ingots were defective; that he was asked to give them back to Aditya; that he started from Pioneer at 14.00 Hrs. alongwith 35 pieces of defective Ingots and reached Aditya and unloaded the same at about 15.45 Hrs. that another consignment of 135 pieces of M.S. Ingots was loaded at 16.15 Hrs. and the factory Supervisor asked him to deliver the goods at Pioneer; that the Supervisor also gave him another weighment slip for 135 pieces showing the net weight as 10.070 M.Ts; that except the weighment slip, the Supervisor had not given any document like Central Excise Gate Pass etc. for the said consignment; that the said consignment passed through the Commercial Tax Check Post and. he also handed over the Inward Pass showing the passing time as 5 P.M. on 27 -6 -1993 against first check registration Sl. No. 2368; that he crossed the Secunderabad Cantonment 3 times once while coming from Medchal, returning to Medchal and. again while taking the second consignment alongwith the M.S. Ingots and that he did not get transit passes when he was taking empty lorry to Medchal in the morning. Regarding the indication on the left side of the weighment slip given second time, he stated that for the second load of 135 pieces of M.S. Ingots, he did not have any other document except weighment slip.

(3.) RAGHUVIR Singh, Supervisor of Aditya in his statement dated 28 -6 -1993 stated that on 27 -6 -1993 one consignment of M.S. Ingots weighing 10.300 MTs was cleared at 9.25 AM under Gate pass No. 184, dated 27 -6 -1993. Shri Lakhi Prasad Manager of Aditya in his statement dated 28 -6 -1993 stated that he despatched 135 ingots at 9.25 AM on payment of central excise duty vide gate pass No. 184 on 27 -6 -1993 to Pioneer and the same was unloaded at Pioneer and that the driver had brought back gate pass No. 184 alongwith the vehicle and the way bill No. 179 which was issued for 135 ingots and that he again despatched one more consignment of 135 ingots under the cover of the same gate pass and way bill around 4.45 PM on 27 -6 -1993 and they have not paid any duty on the second trip. Shri Matadeen Gupta, Managing Director of Aditya in his statement stated that on perusal of three weighment slips and two factory gate passes, three consignments appear to have been cleared from Aditya. Murtaza, Managing Partner of Pioneer in his statement stated that consignment of 10.170 of ingots was received in their factory on 27 -6 -1993 from Aditya and returned the same at 2 PM due to variation in weight and that gate pass for 10.300 MT was sent alongwith the material for verification of weighment and that they have not received back the same.