INDIA CASTING CO. Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) BRIEFLY stated the facts of this case are as follows : -

(2.) DIESEL engines of capacity above and below 10 H.P., and centrifugal water pumps were exempted from excise duty during the relevant period i.e., 1 -12 -1991 to 16 -6 -1993. For the manufacture of these exempted final products, the appellants were procuring non -duty paid inputs under the provisions of Chapter X of Central Excises Rules, 1944. Non -duty paid inputs were brought into the factory under C.T. -2 certificates, issued by the jurisdictional Superintendent of Central Excise.

(3.) ON the basis of intelligence that the appellant was misusing the facility of Chapter X of Central Excise Rules, 1944 by showing excess issue of inputs in the relevant records than their actual use and disposing the same in the manner other than as specified in the application for grant of registration for procuring non -duty paid inputs under Rule 192 ibid, a team of Central Excise Officers visited the factory premises of the appellant on 16 -6 -1993 and conducted physical varification of stocks of finished goods and non -duty paid inputs (brought for special industrial purpose, under the aforesaid chapter X) in presence of the representatives of the appellants, Shri Devendra Srivastava, Store Incharge, Shri Raj Kumar Sharma, Store Keeper and two independent witnesses. Two verification reports which were part of the Panchnama dated 16 -6 -1993 marked as Annexure 'A' (for non -duty paid inputs brought under Chapter X ibid) and Annexure C (for finished goods) were prepared.