Jawahar Lal Gupta, J. - (1.) THESE are two petitions under Section 35G(3) of the Central Excise Act, 1944. The Company and its Director are the petitioners. They pray that the Appellate Tribunal be directed to refer the following question of law for the opinion of this Court : - "Whether the Hon'ble Tribunal is correct in law in arriving at a conclusion that the consumption of 852 units is sufficient for the production of 1 M.T. Steel ingots in the case of the petitioner when the Central Excise Deptt., has already fixed the norms of consumption of 1000 units of steel ingots in the case of induction furnace ".
(2.) A few facts as relevant for the decision of these cases may be briefly noticed. In pursuance to an information that the petitioners were indulging in suppression of production and clandestine removal of the steel ingots, a surveillance was kept on the activities of the company. On October 11, 1990, a truck bearing No. PUR 7537 was intercepted. The driver produced a Central Excise Gate Pass No. 515 showing the removal of 14.230 MTs of steel ingots. He and various other persons were questioned. The officers visited the factory premises and took certain record into possession. It was noticed that the truck had already transported stocks measuring 14.230 MTs in the morning. On the basis of the same Gate Pass No. 515, another consignment weighing 14.030 MTs was being removed. The factual position was admitted by Mr. C.L. Nagpal - the Managing Director of the Company. Further investigation was conducted. Record relating to the payment of octroi at various checks posts at Ludhiana, Gobindgarh and Shambu barriers was collected. The statements of various employees of the company were also recorded.
(3.) ON April 8, 1991, the Company was given a notice to show cause as to why - (i) The steel ingots weighing 14.030 MTs be not confiscated. (ii) The truck used in transporting non -duty paid steel ingots be not confiscated under Section 115 of the Customs Act. (iii) Central Excise Duty amounting to Rs. 59,13,056.26 be not imposed on the suppressed production of 10618.784 MTs of steel ingots clandestinely removed during the period be not recovered from them.;