- (1.) The Appellant herein is engaged in the business of manufacturing of Aluminium Profiles, bars and roads, tubes and papers. These items which are finished goods are subjected to excise duty and classified under chapter 76 of the Schedule to the Central Excise Act. Substantial quantity of the aforesaid goods manufactured by the Appellant is exported. Some officials of the Central Excise Department visited the factory of the Appellant on 16.08.1996 and checked the physical stock of the finished goods viz-a-viz, the stock recorded in its books. On verification, these officials found that several quantities of goods are unaccounted. These goods were, accordingly, seized. The raiding party also visited the office premises of the Appellant. It went to the dealers of the Appellant and recorded their statements as well. Statements of some of the employees of the Appellant company who were dealing with the affairs of the Appellant were also recorded.
(2.) On the basis of the aforesaid material and the, statements recorded, the Department took the view that the Appellant had been clandestinely removing some of the quantities of the finished goods. On this basis, a show cause notice dated 03.03.1999 was issued to the Appellant company as well as its managing director. Making out the case of evasion of excise duty and suppression of facts on the part of the Appellant, extended period of limitation was invoked, as per proviso to Section 11A(1) of the Central Excise Act.
(3.) The Appellant submitted its reply to the said show cause notice contesting the position which was taken by the Department in the said notice. The Appellant submitted that there was no clandestine removal of any quantity of finished goods and the raw material was in fact used in manufacturing the finished goods.;