DEEPAK TANDON Vs. COMMISSIONER OF C. EX., BHUBANESWAR

JUDGEMENT

(1.) ALL these appeals are being disposed of by a common order as all arise out of the same impugned Order passed by the Commissioner of Central Excise, Bhubaneswar. The appellants, M/s. Birla Tyres are engaged in the manufacture of tyres, tubes and flaps falling under Chapter 40 of the Central Excise Tariff. The appellants factory was visited by the Central Excise Officers on 4 -1 -1995, who conducted various checks and verifications. The appellants, apart from maintaining the statutory records, were also maintaining a private record titled as Daily Production Register. In the said record, entries relating to the tyres (good quality), tyres (seconds) and scraps were being maintained by them. The impugned Order confirming the demand of duty is based on a comparison of entries made in the said Daily Production Account with the entries made in the RG 1 register of the appellant company. It has been alleged against the appellants that 26,914 number of tyres of different varieties have not been accounted by them in their RG 1 register and have been manufactured and cleared clandestinely without payment of duty. During the investigation period, the statements of various persons of the appellant company were recorded.

(2.) IN his statement dated 3 -2 -1995, Shri Nani Gopal Das, Production Assistant of the appellant company, deposed that he was maintaining the said record on the basis of the reports generated by the Shift -in -Charge and Daily Production Register was being maintained on the basis of Tyre Curing Shift Report for the three shifts received separately from the Shitt -in -Charge. The Tyre Curing Shift Reports are prepared on the basis of number of tyres cured in each shift and such report is submitted to the Production Superintendent on daily basis. The statement of Shri Probodh Narayan Jha, Production Superintendent was also recorded, wherein he deposed that the Daily Production Register was containing total number of green tyres moulded exactly on daywise basis. He also stated that all the tests and inspections are done and moulded tyres which are passed by the Curing Section are the manufactured tyres. The statement of Shri S.C. Sood, Senior Manager of the Company was also recorded. He had stated that he was responsible for making entry in the statutory record for the Central Excise purposes and the Daily Production Register is maintained by the Curing Section. He further stated that the RG 1 register was maintained by him correctly and the discrepancy between the Daily Production Register and RG 1 may be resolved when the Curing Section was giving rough figures and the said register was never maintained systematically.

(3.) ON the basis of the above facts and on a comparison of entries reflected in the said Daily Production Register with the entries made in RG 1, a show cause notice dated 29 -6 -1995 was issued to the appellants alleging clandestine removal and clearance of 91663 number of tyres and demanding duty of Rs. 10,32,64,386.00 against the appellant company, M/s. Birla Tyres and proposing imposition of penalty on them as also on various persons. Apart from this, the notice also proposed confirmation of duty of Rs. 1,19,900.00 on 55 number of tyres allegedly removed clandestinely and seized by the Officers from the godown maintained by M/s. Birla Tyres outside their factory premises. Further, it was alleged that 36 MT of Carbon Black, a declared input under the Modvat provision was found bo be stored in another unapproved godown and accordingly, the same was found short in the Raw Material Store maintained in the factory. Notice proposed denial of Modvat credit of Rs. 1,52,208.00 on the said Carbon Black found short. Duty of Rs. 3,47,685.00 already debited by the appellant firm as Central Excise duty on the tyres removed by destructive testing was sought to be confirmed against them.