Decided on June 23,2015

Commr. Of C. Ex., Cus. And S.T., Hyderabad -I Appellant
Cubex Tubings Ltd. Respondents


ARCHANA WADHWA, J. - (1.)Both the appeals one filed by the assessee and the other filed by the Revenue are being disposed of by a common order as they arise out of the same impugned order of Commissioner. The assessee is engaged in the manufacture of various articles of copper and copper alloys such as copper tubes, copper rods, copper strips, copper flats, brass tubes, cupro nickel pipes, etc., falling under Chapter 74 of the Central Excise Tariff Act, 1985. Their factory was visited by the officers of the Directorate of Central Excise Intelligence on 25 -3 -2008 at 8.00 AM in the morning. Various verifications were conducted and records were seized. Further, the officers found copper winding wire scrap lying in gunny bags as also in loose and lump condition in the factory. As the appellant could not explain the source of procurement of the said scrap, which is raw material for the appellant, the same was seized under panchnama. Verification of the finished goods stock revealed that Ad brass pipes to the extent of 15946.921 Kgs and cupro nickel pipes to the extent of 211 kgs were not entered in the daily stock register RG -I. On a reasonable belief that the same were meant for clandestine removal, the officers seized the same.
(2.)During the course of post seizure investigations, the statements of various persons were recorded. Shri Bhanwar Lal Ramavat Dy. General Manager (Production & Tools) in his statement dated 26 -3 -2008 agreed with the panchnama proceedings and submitted that he was not aware of the source of acquisition of the scrap and the finished products were manufactured in their factory about 10 days back and passed quality checks around 7 days back.
Shri Mohanlal Sharma Dy. General Manager (Technical & Quality Control) in his statement dated 26 -3 -2008 showed his ignorance about the source of the scrap and further submitted that the final products were manufactured about 10 days back and passed quality check around 7 days back. Further he submitted that the said final product was duly recorded in batch -wise records.

Statement of Smt. Tamil Selvi, Central Excise Assistant of Cubex Tubing Ltd. was also recorded, wherein, she deposed that she was responsible for making entries of invoices, quantity details, Cenvat credit details, etc., in the Central Excise related records. As she was not given any packing list in respect of the final product, no entries were made in the RG -I.

(3.)Subsequently vide their letter dated 2 -4 -2008, the appellant submitted that cupro nickel and brass tubes were finally completed at the late hours on 24 -3 -2008 and therefore, entries could not be made in RG -I records. They also submitted that cupro nickel tube is meant for export and as such there is no incentive for them for not entering the same in RG -I Register. They made a request for provisional release of the goods.

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